DENVER (KDVR) — Kroger, the parent company of King Soopers, and Albertsons, the parent company of Safeway, may soon join together as one large grocery store organization.

The merger, first reported by Bloomberg, would fuse the two of the largest grocery store chains in the country. Kroger is the second-largest grocer while Albertsons is the fourth.

The deal could be announced this week, CNBC reported, though there has been no comment from either company. A deal would have the potential to face antitrust scrutiny from federal regulators.

Effect on Denver grocery shopping

Both companies have large shares of Colorado’s grocery store market. Albertsons has 105 grocery stores in Colorado, mostly under the Safeway brand, according to the company’s website. Kroger lists 148 stores in the state, operating as King Soopers and City Market stores.

The merger would create a single conglomerate in control of roughly half the Denver-area market. According to data from Chain Store Guides, reported by Axios, Kroger had 33.6% of the Denver area’s grocery sales in 2021, while Safeway had 11%. Combined, the single company would have nearly 45% market share in the Denver area.

This would dominate the other chains by a large margin. Walmart is the metro’s second-largest grocer with a 16.5% market share.

UFCW, a union representing grocery store workers at both companies, released a statement Thursday against the merger, saying it would be “devastating” for workers and customers. “This proposed merger of two of the largest grocery companies in the nation will no doubt create a monopoly in the grocery industry for many communities,” said Kim Cordova, president of UFCW Local 7 and vice president of UFCW International Union.

Grocers have reported record earnings in the last year as inflation pressures prompted shoppers to spend more of their budget making food at home rather than eating out.