Important update on Kroger and Albertson’s $25 billion shopper change – and what it means for 5,000 stores

The upcoming $25 billion merger of food giants Kroger and Albertsons has been the focus of an antitrust panel in the Senate Judiciary Committee.

Kroger CEO Rodney McMullen and Albertsons top executive Vivek Sankaran were forced to answer questions from committee members, according to Senator Amy Klobuchar’s office.

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Republican Senators Mike Lee and Klobuchar both called for executives to question them.

“We will hold a hearing focused on this proposed merger and the consequences for consumers if this transaction goes ahead,” the statement said.

Krogers is trying to buy Albertsons for nearly $25 billion.

The merger will affect 5,000 stores in 48 states and add $47 billion in value to Krogers.

The companies have faced fierce criticism over their merger, including from the United Food and Commercial Workers.

The UFCW union represents two-thirds of Kroger workers and most of Alberston’s 290,000 workers.

“To be clear, UFCW will oppose any merger that threatens the jobs of America’s key workers, union and non-union, and undermines our communities,” the UFCW said in a statement about the merger.

Stacy Mitchell, co-executive director of a nonprofit that helps communities attract grocery stores, is also scared of the deal.

“It’s very likely that if it goes through, more communities won’t have a grocery store,” Mitchell said.

The Federal Trade Commission (FTC) will conduct intensive scrutiny of the merger agreement.

The US Sun previously reported that government officials have tried to slow this transaction in the past by targeting Albertson’s $4 billion cash dividend distribution to Kroger shareholders.

The companies have announced they are willing to divest 650 stores to avoid FTC monopoly lawsuits.

Because the brands have largely unionized businesses, their acquisition is less attractive to private equity firms.

If they can’t find a buyer, they will hand over 350 grocery stores to shareholders and try to complicate FTC complaints.

These dizzying announcements underscore the desperation of both companies as box stores expand into grocery.

Corresponding ReutersMcMullen said the merger would help the brands keep up with “bigger non-union” stores like Amazon, Target and Walmart.

Krogers executives have said they will cut food prices and increase employee wages.

Both brands have had some trouble making savings fair to low-income and older shoppers.

Kroger officials have not yet commented on the Senate investigation.

A total of 19 companies exist under the Kroger brand, including well-known grocery stores such as Fred Meyer, Dillons, Ralphs and QFC.

Albertsons owns 22 brands including Shaw’s, Safeway and Acme.