Kroger receives ‘second request’ from FTC, expects completion of Albertsons merger in early 2024
The Kroger Co. says it has received a request for additional information or a "second request" from the Federal Trade Commission as part of the regulatory review process for its merger with Albertsons Cos.
In response, Kroger issued the following statement:
“Kroger looks forward to realizing the compelling benefits this merger will offer, including enhancing competition, lowering prices for customers, improving access to fresh food, creating opportunities to continue investing in our associates and securing the long-term future of union jobs. We will continue to work cooperatively with the Federal Trade Commission as it conducts its review of the merger, including developing a thoughtful divestiture plan.
“Kroger continues to expect to complete the merger in early 2024,” according to the statement.
The Cincinnati-based grocer said the second request extends the waiting period imposed by the Hart–Scott–Rodino Antitrust Improvements Act until 30 days after Kroger and Albertsons Cos. “have substantially complied with the requests or the waiting period is terminated sooner by the Federal Trade Commission. The transaction remains subject to customary closing conditions.”
Related: Kroger to acquire Albertsons Cos. for nearly $25B
Kroger entered a definitive agreement with Albertsons Cos., Oct. 14, to purchase the Boise, Idaho-based competitor for approximately $24.6 billion.
The move sparked an immediate response from independent grocers and the National Grocers Association, which represents them.
"A merger would not only put smaller competitors at an unfair disadvantage, but also increase anticompetitive buyer power over grocery suppliers, which ultimately would harm consumers,” Greg Ferrara, NGA president and CEO, said in an Oct. 14 release. “It is our expectation that this deal will receive rigorous scrutiny from federal antitrust enforcers," he added.
Related: Indie grocers respond to Kroger-Albertsons merger
Related: Kroger reports ‘strong results’ in Q3
Together, Albertsons and Kroger currently employ more than 710,000 associates and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers.
The combination of the two grocery powerhouses would create a "premier seamless ecosystem" across 48 states and the District of Columbia, providing customers with a "best-in-class shopping experience" across both stores and digital channels, according to a release.
