Pacific Palisades Supermarket Set To Be Sold Under Grocery Mega-Merger Plan

PACIFIC PALISADES, CA — The Vons on Sunset Boulevard is among hundreds of supermarkets in California that are set to be sold as part of Kroger and Albertsons' $25 billion mega-merger plan, the companies announced.

Calling it the largest supermarket merger in U.S. history, the Federal Trade Commission sued to block the acquisition earlier this year, arguing it could eliminate competition, drive prices higher and reduce choices for shoppers. The FTC and union leaders have also expressed concerns over how the deal could impact more than 710,000 workers employed by the two companies.

The combined companies would own nearly 5,000 stores, plus thousands of pharmacies and gas stations and dozens of distribution centers and plants.

In California, Kroger owns brands including Ralphs and Food 4 Less. Albertsons owns Safeway, Vons and Pavilions.

Kroger CEO Rodney McMullen says the merger would save up to $1 billion in costs, allowing for lower prices to be passed on to customers and workers to earn higher wages.

The suit is scheduled to head to trial at the end of August.

The latest merger plan would see the two grocery giants offload 572 stores, six distribution centers and a dairy plant to C&S Wholesale Grocers, a New Hampshire-based company that owns the Piggy Wiggly and Grand Union brands.

In a message shared Tuesday, Kroger's CEO said the deal included commitments from C&S to continue operating the stores, honor existing collective bargaining agreements and avoid layoffs.

Read more about the merger plans and see the full list of stores set to be sold to C&S under the agreement here.

Lucas Combos contributed reporting.