Cancelled Transaction: Albertsons Smith’s Merger Over
At the alter of the Albertsons Smith’s merger, right before the lawyer declared them one big, massive grocery chain, several judges ran in and objected. Now, it is over. Albertsons is throwing in the towel and the potential of the two biggest grocery stores in Southern Nevada becoming one is over.
The decision was officially announced Wednesday morning. Albertsons (who owns Vons and other brands from another merger which lowered choice in the region) came to the conclusion that the path to merging with Smith’s owner Kroger would be rife with anti-trust roadblocks and not worth the time.
Why The Albertsons Smith’s Merger Ending Could Be A Good Thing
If you listened to the companies in the Albertsons Smith’s merger, they would tell you their corporate union was a necessary one, comparing them to Walmart who has a much larger footprint.
But Walmart is not a pure-play grocer. Albertsons, Vons, Smith’s, they are all purely in the grocery game. Particularly in Southern Nevada where the vast majority of grocery locations are one of the three.
With a merger (and a paltry spinoff of a handful of locations) say goodbye to comparison shopping to save money on strawberries, chicken, cereal and more. The Just For U app, already spread to two brands that used to have independent promotions, apps and circulars of their own, could stretch to three.
One circular in your mailbox with three logos. No stopping at Smith’s one day and Albertsons the next to get different deals and stretch your dollar as far as you can.
The Federal Trade Commission also made it clear that they objected to the merger on two fronts: consumers and employees. People working at these grocery stores, some of them unionized, would have far less negotiating power to earn a living wage in their jobs.
So with today’s news, the Albertsons Smith’s merger is dead and gone. Although if you’ve stopped by the Vons on Warm Springs and Durango – a location that was set to be spun off if they merged because there is a Smith’s across the street – you’ll notice it has been undergoing a remodel. Maybe they knew it wouldn’t be approved all along.