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Kroger’s CEO Reiterates Benefits of Proposed Merger with Albertsons

07/01/2024

In a June 27th press release, Rodney McMullen, CEO of the Kroger Company, outlined benefits to stakeholders that would accrue from the proposed merger of his company with Albertsons Corporation.  He pledged that if approved, the transaction would not result in layoffs.  It is intended to invest $500 million to lower grocery prices “over the short term(?)” and to invest $1.3 billion in upgrades for Albertsons stores.  In a defense of the merger against union opposition, McMullen noted that Kroger will commit $1 billion to raise wages and benefits and will recognize unions.

 

The proposed merger is opposed by the FTC and by a number of states Attorneys General.  Although the two companies are committed to a joint defense of the transaction, it is possible that if litigation and appeals are unsuccessful, the parties may play out the clock  or re-structure the agreement with the prospect of a more sympathetic consideration by a subsequent Administration.