Supermarket retailers Kroger and Albertsons are two of the largest fueling station providers in the country, operating approximately 1,408 U.S. gas stations, but about 10% of those stations would be divested to C&S Wholesale Grocers if the $24.6 billion mega-merger of the two grocery chains is approved later this year.
That’s according to a recent article in Dow Jones Newswires, which looks at an analysis by the Dow Jones information service’s Oil Price Information Service (OPIS).
The report revealed that most of those gas stations are located at Albertsons-owned Safeway stores, about 20% of which would be divested if the deal goes through.
The OPIS analysis also noted that Safeway is the nation’s 34th largest provider of fuel in terms of visit count, and the average price of gas at those locations is 21 cents below the market average.
Overall, about 147 gas stations would be divested under the current proposal across 13 of the 18 states and the District of Columbia that would be affected by the grocery merger.
The states that would be affected include Washington with 41 fueling stations, Colorado (38), Arizona (27), Texas (13), Alaska(8), Oregon (8), Illinois (5), California (2) and one each in Delaware, Idaho, Montana, Nevada and New Mexico.
Safeway would lose 108 of its 289 stations under the deal, according to the report. Other banners that would see gas stations divested include QFC (11), Tom Thumb (9), Carrs (5), Mariano’s (5), Market Street (3), Vons (3), Albertsons (1), Harris Teeter (1) and Randalls (1), according to the OPIS analysis.
A dozen of the Safeway locations would be rebranded under the deal, the report noted.
C&S Wholesale Grocers has operated fueling stations since 1999 and now operates 12 Piggly Wiggly fuel centers in seven states, the OPIS analysis said.
Kroger released a statement concerning the gas station divestitures, noting that C&S is positioned to successfully operate the divested stations due to their “strong operational focus” and “experienced management team and financial resources.”
“The expanded divestiture package will further ensure C&S can continue serving and supporting communities for years to come. The divestiture plan will ensure zero stores or fuel centers will close as a result of the merger, and all frontline associates will remain employed,” according to Kroger.
This story first ran inSupermarket News.
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