(WBBM NEWSRADIO/AP) – The proposed merger of grocery giants Albertsons, owner of Jewel Osco, and Kroger, which owns Mariano’s, appears to be in the last mile.
Both will sell more than 400 stores and other assets for about $1.9 billion, seeking to clear a path with antitrust regulators reviewing a deal that would unify two of the nation's largest grocery chains.
The 413 stores, along with QFC, Mariano's and Carrs brand names, are being sold to C&S Wholesale Grocers. C&S, owner of the Piggly Wiggly chain, will get eight distribution centers and two offices.
Crain's Chicago Business reporter Ally Marotty says the Chicago area Mariano’s stores that aren't sold could become Jewel or Kroger locations.
If approved by federal regulators, the merger could be the biggest change to the Chicago grocery landscape since the Dominick's chain shut down 10 years ago.
C&S has prior experience with divestitures related to mergers and has successfully transitioned union employees and their associated collective bargaining agreements in the past.
"Importantly in our agreement, C&S commits to honoring all collective bargaining agreements which include industry-leading benefits, retaining frontline associates and further investing for growth," Kroger Chairman and CEO Rodney McMullen said in a statement on Friday.
Shares of Kroger Co., based in Ohio, rose 5% Thursday and Albertsons Cos., based in Idaho, rose 3%.
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