Kroger and Albertsons said Friday they will sell 413 stores, including Carrs and Safeway, along with other assets for about $1.9 billion.
This sell-off of assets would create more certainty for completing a merger that is opposed by major labor unions and Rep. Mary Peltola, who is in lockstep with the AFL-CIO.
The 413 stores will be sold to C&S Wholesale Grocers in a move that was clearly anticipated by the companies involved, even before the unions began vocally opposing the merger.
Kroger, which owns Fred Meyer, will also sell several of its other entities and private label brands. C&S will get eight distribution centers and two offices.
All fueling stations and pharmacies associated with the divested stores will stay with them as they are shed from the Kroger/Albertsons alliance.
Kroger offered $20 billion to buy Albertsons, and take on about $4.7 billion of Albertson’s debt. The deal is expected to close early next year, if the Federal Trade Commission does not cave into the unions trying to prevent the merger.