Albertsons, Kroger and Co. VS US senators the price of the issue is 25 billion
2022.11.29 07:16
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Albertsons, Kroger and Co. VS US senators the price of the issue is 25 billion
Budrigannews.com – Top Kroger executives (NYSE:) On Tuesday, lawmakers who are concerned that the planned $25 billion merger between the grocery stores will raise food prices at a time when inflation is a concern are expected to ask tough questions of Co and Albertsons Companies Inc.
Kroger CEO Rodney McMullen and Albertsons’ boss, Vivek Sankaran, will go before the Senate Legal executive Advisory group’s antitrust board, a portion of whose individuals have previously condemned the arrangement.
Richard Blumenthal and Senator Amy Klobuchar, who chairs the Senate antitrust panel, signed a letter to Federal Trade Commission Chair Lina Khan stating that the merger “raises considerable antitrust concerns.”
When they announced the deal, which would bring nearly 5,000 stores, including Safeway, Ralphs, and Fred Meyer, under one corporate umbrella, the companies offered an aggressive plan to resolve concerns because they were aware that the deal would be controversial and that antitrust enforcement has become more stringent.
To calm government concerns, the businesses have stated that they anticipate selling between 100 and 375 stores.
They could also incorporate the facilities into a new company that would be owned by Albertsons’ shareholders, though they would prefer to find buyers for them. The plan, according to UBS, is expected to be approved by antitrust authorities.
The FTC, which is investigating the deal to ensure that it complies with antitrust laws, may be compelled by this plan to demonstrate in court not only that the transaction is unlawful but also that the proposed remedy is inadequate.
Walmart, Inc. dominates the grocery market in the United States.
A widely criticized plan to distribute a $4 billion dividend to Albertsons shareholders may also draw criticism from the public on Tuesday.
That plan was put on hold by a Washington state court, and the next hearing is scheduled for December 9.Separately, the attorneys general of California, Illinois, Washington, D.C., and Illinois have all filed a lawsuit to stop that payment, claiming that doing so would make it harder for the business to compete.
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