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 info for Kroger Co and Albertsons Cos Inc. on the ground of the New York Inventory Alternate (NYSE) in New York Metropolis, U.S., October 14, 2022. REUTERS/Brendan McDermid/File Photograph
By Diane Bartz
WASHINGTON (Reuters) – Kroger (NYSE:) CEO Rodney McMullen and Albertsons’ prime govt, Vivek Sankaran, will face questions this week on plans for the 2 big grocery corporations to merge in a $25 billion deal, Senator Amy Klobuchar’s workplace mentioned 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 influence of the proposed merger of Kroger and Albertsons, the 2 largest grocery chains within the nation,” the assertion mentioned.
The FTC is predicted to aggressively evaluation the deal to make sure it complies with antitrust legislation. To counter criticism, the businesses mentioned they plan to divest some shops and Albertsons mentioned it was able to spin off a standalone unit to its shareholders instantly earlier than the deal’s shut, possible 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 convey below one roof almost 5,000 shops that embrace banners similar to Albertsons’ Safeway and Kroger-owned Ralphs and Fred Meyer.
Whereas the 2 are the most important standalone grocers, Walmart (NYSE:) is the market chief.
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