According to sources, Kroger Co and Albertsons Companies Inc are advancing plans to sell between 250 and 300 stores in hope of alleviating U.S. antitrust concerns over their proposed merger.
The divestitures would come as the Federal Trade Commission, which is reviewing Kroger's proposed $24.6 billion acquisition of Albertsons, is under pressure from some U.S. lawmakers and consumer groups to prevent the action due to concerns it could lead to grocery price hikes and retail monopolies in some areas.
The stores that Kroger and Albertsons may sell could be worth more than $1 billion. They are located across all the regions where the two companies operate - for example, the Pacific Northwest, Southern California, Phoenix and Chicago.
Kroger and Albertsons operate a total of 4,996 stores. The companies have started to sound out potential buyers for the stores and have been discussing their plans with the FTC to get its blessing, according to reports.
Rumors of possible prospective buyers for the stores include rival grocery store operators who are looking to expand their U.S. footprint, such as Ahold Delhaize. Netherlands-based Ahold owns Stop & Shop, Giant, Food Lion and Hannaford chains in the United States.
When Albertsons agreed to the $9 billion acquisition of Safeway in 2014, it got regulatory clearance by agreeing to sell 146 stores to West Coast regional grocer Haggen for $300 million. That turned out to be disastrous for Haggen.