Kroger, Albertsons CEOs to face congressional questions on deliberate U.S. merger By Reuters
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© Reuters. FILE PHOTO: Merchants work as screens show the buying and selling data for Kroger Co and Albertsons Cos Inc. on the ground of the New York Inventory Change (NYSE) in New York Metropolis, U.S., October 14, 2022. REUTERS/Brendan McDermid/File Picture
By Diane Bartz
WASHINGTON (Reuters) – Kroger (NYSE:) CEO Rodney McMullen and Albertsons’ high government, Vivek Sankaran, will face questions this week on plans for the 2 big grocery firms to merge in a $25 billion deal, Senator Amy Klobuchar’s workplace stated in an announcement.
The listening to was known as by Klobuchar together with Senator Mike Lee, the highest Republican on an antitrust panel of the Senate Judiciary Committee. Klobuchar chairs the subcommittee.
“The listening to will study the impression of the proposed merger of Kroger and Albertsons, the 2 largest grocery chains within the nation,” the assertion stated.
The FTC is anticipated to aggressively overview the deal to make sure it complies with antitrust legislation. To counter criticism, the businesses stated they plan to divest some shops and Albertsons stated it was able to spin off a standalone unit to its shareholders instantly earlier than the deal’s shut, doubtless in early 2024. The brand new public firm is estimated to comprise as many as 375 shops.
The mega merger between the No. 1 and a couple of standalone grocers in the US would deliver underneath one roof practically 5,000 shops that embody banners reminiscent of Albertsons’ Safeway and Kroger-owned Ralphs and Fred Meyer.
Whereas the 2 are the biggest standalone grocers, Walmart (NYSE:) is the market chief.
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