Mariano's Jewel merger: What will happen to your local supermarket and will prices go up?

What does it mean for Chicago-area grocery stores if the $24.6 billion deal between Albertson's and Kroger's goes through?

Image by Igishevamaria/Depositphotos.com

(CHICAGO) Two of the largest grocery store chains in the nation have agreed to a merger, which would help them compete with Walmart. Kroger announced the deal to merge with Albertsons Companies Inc. on Friday, October 14. Kroger bid $20 billion and agreed to assume $4.7 billion of Albertsons' debt.

"We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders," Rodney McMullen, Kroger Chairman and Chief Executive Officer said in a statement.

In Chicagoland, Kroger owns and operates Mariano's grocery stores, and Albertsons operates Jewel Osco.

The companies will need government approval before merging

The merger still would require regulatory approval. If approved, the deal wouldn't go through until 2024.

Albertsons is based in Boise, Idaho, and has over 2,200 stores in 34 states. This includes 188 Jewel stores in the Chicago area. Kroger, based in Cincinnati owns and operates 2,750 stores in 35 states, including over 40 Chicagoland Mariano's.

The agreement to merge comes at a time when shoppers are reeling from inflation, and the possible merger will be investigated by U.S. antitrust regulators before approval.

What will happen to Chicago-area Jewel and Mariano stores?

Chicagoans remember when the iconic Dominick's Finer Foods closed its stores in 2013. Many Dominick stores remained vacant or were bought by area grocers such as Jewel, Mariano's, and Whole Foods.

If the merger between Jewel and Mariano's goes through, there will be redundancies and possible closings of stores. In an article from ABC7 Chicago, critics of the deal expressed concern the merger would make groceries less accessible in underserved communities.

Chicago area social media reacts

The response from the Chicago area on social media been overall negative about the merger. On a Twitter post from the Chicago Tribune regarding the deal, one user said, "Worst thing that could happen. No competition. Another user agreed, "Very bad idea."

On the other hand, analysts told ABC7 Chicago the new, larger company might be able to slow inflation by rejecting food producer price increases.

Chicagoans will have to wait and see if the government approves the merger. If it does, we don't know yet what the company will do with current Chicago-area Mariano's and Jewel stores and whether or not it will be good or bad for food prices.

To get NewBreak stories delivered for FREE on your phone, download the NewsBreak App. If you use my link, I get a small commission (at no cost to you.)