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Trade albertsons monopoly game pieces12/9/2023 It was no secret that Albertsons was thinking about selling the company. "A Kroger-Albertsons deal would squeeze consumers already struggling to afford food, crush workers fighting for fair wages and destroy independent, community stores," said Sarah Miller, executive director of the American Economic Liberties Project, a nonprofit that supports stronger corporate accountability and antitrust measures. Food prices rose 13% in September compared with last year, according to U.S. Together, the stores operate in 48 states and the District of Columbia.īut critics questioned a merger at a time of high food price inflation. Kroger also said the combined stores would provide greater and faster access to fresh food, with a combined 66 distribution centers and 52 manufacturing plants. The union didn't immediately respond to a request for comment Friday from The Associated Press. The majority of Kroger's hourly workers are unionized with the United Food and Commercial Workers union, which also represents workers at Albertsons-owned Safeway. It would also spend $1.3 billion updating Albertsons stores and $1 billion on higher employee wages and improved benefits. Kroger said would reinvest approximately $500 million into price reductions. The two chains combined have 34,000 private label products at various price points that compete directly with food manufacturers. Goldman said a stronger combined company could possibly help tame food price inflation, since it would have more power to reject food producers' price increases. Value chains like Aldi and Dollar General _ which have a combined 4% market share _ have also been squeezing traditional grocers like Kroger and Albertsons, particularly as red-hot inflation pushes people to cut costs. Amazon, which bought Whole Foods in 2017, is also a growing player in the space, with 3% share. Still, that is a distant second to Walmart's 22% share. grocery market, assuming the sale or closure of around 400 stores for antitrust reasons, according to J.P. Together, the stores would control around 13% of the U.S. "We'll want to evaluate each market individually, who has the stronger market share," he said. McMullen said the company would decide market-by-market whether stores would change their names. "We are confident, from the extensive work that we've done, that we have a clear path to achieve regulatory approval with divestitures," Kroger Chief Financial Officer Gary Millerchip said. The companies said they would spin off up to 375 Albertsons stores in a standalone public company. To ease the regulatory process, Kroger and Albertsons said would divest stores in markets where they overlap. If approved by regulators, the deal is expected to close in early 2024. In July, President Joe Biden signed an executive order promoting competition in business and calling for tougher scrutiny of mergers. The Justice Department and the Federal Trade Commission were already in the process of updating merger guidelines to better detect and prevent anticompetitive deals. antitrust regulators, especially at a time of high food price inflation. The deal will likely get heavy scrutiny from U.S. Together the companies employ around 710,000 people. Alberstons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw's. Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith's and Harris Teeter. Shares in both companies fell in morning trading Friday. "We will take the learnings from each company to bring greater value and a better experience to more customers, more associates, and more communities," McMullen said Friday in a conference call with investors. McMullen said the company would plow those savings back into lower prices, higher wages and improved stores. Kroger Chairman and CEO Rodney McMullen, who would retain those titles at the combined company, said a merger could save $1 billion annually in lower administrative costs, more efficient manufacturing and distribution and shared investments in technology. Kroger will also assume $4.7 billion of Albertsons' debt. Kroger on Friday bid $20 billion for Albertsons Companies Inc., or $34.10 per share. Two of the nation's largest grocers have agreed to merge in a deal they say would help them better compete with Walmart, Amazon and other major companies that have stepped into the grocery business. King Soopers, Safeway parent companies agree to merge in $20 billion deal 01:55
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