Aldi and Save Mart Reportedly Eyeing Divested Kroger, Albertsons Stores Amid Merger Talks

Amid discussions surrounding the Kroger and Albertsons merger, Aldi and Save Mart have emerged as potential buyers for divested stores. This revelation came from witness testimony during the Colorado antitrust case, where it was disclosed that Kroger had considered offers from numerous parties before selecting C&S Wholesale Grocers as its divestiture partner.

In their post-hearing brief filed on September 27 in the District Court of Oregon, Kroger and Albertsons’ attorneys shared that 92 entities initially expressed interest in purchasing the divested stores. These included 72 strategic buyers and 20 financial buyers. While the two grocery giants ultimately chose C&S Wholesale Grocers, reports suggest that Aldi and Save Mart were among the strategic buyers involved in the discussions.

The ongoing lawsuits, brought by the Federal Trade Commission (FTC) and nine attorneys general, have sparked extensive legal debates. Oral arguments in the Oregon case have concluded, with the Washington state case expected to hear closing statements on October 23, followed by the Colorado case on October 24.

According to a report from The Denver Gazette, Aldi and Save Mart likely expressed interest in acquiring the 579 stores slated for divestiture. Aldi, a German discount grocer with a rapidly growing presence in the U.S., now operates over 2,400 stores. The company has a history of acquisitions, including its 2023 purchase of Winn-Dixie and Harveys Supermarkets from Southeastern Grocers. Meanwhile, Save Mart, based in Modesto, California, operates around 200 stores in California and Nevada.

During the Colorado case, grocery consultant Roger Davidson, a witness for the state, inadvertently revealed Aldi’s interest in the divestiture. Davidson also mentioned Shane Sampson, CEO of The Save Mart Companies, further adding to the disclosure of potential buyers. However, following these revelations, Denver District Court Judge Andrew Luxen reminded attorneys to keep the identities of interested companies confidential.

As the case proceeds, the involvement of Aldi and Save Mart underscores the high stakes in this major grocery industry merger. A decision from the federal case brought by the FTC is still pending, leaving the future of the 579 divested stores and the overall merger uncertain.