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Kroger and Albertsons release list of stores to be sold in proposed takeover

Photographer: Jeffrey Dean/Bloomberg via Getty Images

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Photographer: Jeffrey Dean/Bloomberg via Getty Images

The shape of the proposed merger between grocery giants Kroger and Albertson’s has taken a step forward. The companies have released a long list of stores that will be divested as part of the takeover.

In Arizona, the proposed deal would cover nearly 100 stores, including 20 in Phoenix.

However, the $24.6 billion acquisition is being challenged by the Federal Trade Commission on grounds of its anti-competitive nature.

Arizona Attorney General Kris Mayes also spoke out against the takeover, saying the deal was far from finalized.

“I am proud to stand shoulder to shoulder with the FTC and my fellow attorneys general in this lawsuit to block this anti-competitive, anti-consumer, and anti-worker merger,” Mayes said in a statement.

Both companies boast market capitalizations of more than $10 billion. Kroger’s market capitalization was listed at $37.49 billion by Yahoo Finance, while Albertson’s was listed at more than $11 billion.

Yahoo Finance ranked Kroger as the fifth-largest supermarket chain in the country, while Albertson’s was ranked 11th.

Kroger operates in 36 states, and Albertson’s in 35. Combined, the two companies operate more than 5,000 stores and employ 700,000 people.

Both companies ended the day lower in stock market trading, following the release of information on store locations and the subsequent reaction.

Why is the FTC suing to block the merger?

The FTC says the merger of the nation’s two largest grocery chains will allow them to set their already high prices at any level they choose.

They also say they could try to poach workers from other markets, although the majority of employees at both companies are members of the United Food and Commercial Workers Union.

FTC officials said that without competition, in addition to competitive prices, grocers would have less incentive to sell high-quality products.

Problems Americans Face at the Grocery Store

The proposed merger comes as the country grapples with growing concerns about inflation, especially in the grocery sector.

In April, grocery prices rose 3% over the past three years, according to another survey, and in June, more than a quarter of Americans admitted to skipping meals because of high prices.

The full list of stores proposed for sale can be found below:

Click to open this PDF in a new window.