Albertsons' bid to merge with grocery rival Kroger collapsed Wednesday, saving hundreds of Colorado stores for now. Why it matters: The hotly contested merger had the potential to impact workers and farmers if the combined chain consolidated.

Colorado Attorney General Phil Weiser reacted Wednesday after learning the proposed merger between Albertsons and Kroger, the parent company of King Soopers and City Markets, will no longer move forward.

Under the merger agreement, Kroger and Albertsons — who compete in 22 states — agreed to sell 579 stores in places where their locations overlap to C&S Wholesale Grocers, a New Hampshire-based supplier to independent supermarkets that also owns the Grand Union and Piggly Wiggly store brands.