Closing arguments heard in Kroger-Albertsons merger case

DENVER — After three weeks of testimony, closing arguments were heard Friday in the Colorado antitrust trial regarding the planned nationwide merger of Kroger and Albertsons.

This statement was sent to FOX54 by a spokesperson for Kroger:

“The divestiture plan with C&S will mean zero stores will close as a result of the merger, all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading benefits alongside bargained-for wages. C&S’s strong operational focus and financial resources will position the divested stores to successfully operate and serve their communities for years to come.”

Though Kroger only operates 11 grocery stores in Alabama, it has a significant presence in the Tennessee Valley. Area locations include stores in Huntsville (four locations), Madison, Decatur and Hartselle.

The trial in Colorado could have national implications for the nearly $25 billion merger, which would also incorporate brands such as King Soopers, Fred Meyer, Jewel-Osco, Tom Thumb and Vons into a single ownership group.

Kroger currently operates about 2,700 stores in its family of markets while Albertsons manages another 2,200.

Some stores would be spun off to other owners if the merger goes through, but the deal would still be one of the largest retail mergers in U.S. history. Arguments in Denver have focused in part on the divestiture plan and concerns that the company that would receive hundreds of supermarkets may not be suited to managing them.

C&S Wholesale Grocers would take over 579 stores under the proposal.

The Colorado Attorney General’s Office has argued less competition for Kroger will lead to higher prices for consumers.

“This is not a group of people whose goal is to run a successful retail operation," Arthur Biller said. "They are wholesalers, and their mindset is all about benefiting wholesale. That’s exactly why it’s so dangerous to let this company buy these stores in Colorado.”

Kroger is based in Ohio and Albertsons in Idaho.

The case is playing out as north Alabama is adding a new entrant into its grocery landscape. Food City opened its first store in the area in August, in Fort Payne. Its first Madison County location -- in Owens Cross Roads -- will open on Oct. 30.