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Kroger and Albertsons have said they expect to complete their
merger by early 2024, once the FTC completes its antitrust
review.
Senators Elizabeth Warren, Mazie Hirono, Bernie Sanders and Cory
Booker and representatives Summer Lee and Alexandria Ocasio-Cortez
said in the letter that Kroger's proposal to divest 413 stores
to C&S Wholesale Grocers would not address harms to consumers,
workers, and the grocery industry if the merger is allowed.
The lawmakers are arguing that store divestitures as a remedy to
mega mergers often fail to maintain competitive conditions,
because companies have an incentive to ensure that the
businesses they spin off do not succeed.
C&S, which secured financial backing from SoftBank Group Corp
for its deal with Kroger, operates primarily as a supplier
rather than a grocery-store operator. It currently has around
two dozen stores under the Grand Union and Piggly Wiggly brands.
Other lawmakers, including congressmen Greg Landsman, Brian
Fitzpatrick and Josh Gottheimer have sent letters to the FTC in
support of the deal.
Kroger and Albertsons have said the deal will allow them to
better compete with large, non-union players and achieve lower
prices. Kroger also said that it will not close any stores,
distribution centers or manufacturing facilities or lay off any
frontline associates as a result of the merger.
The FTC declined to comment. Kroger and Albertsons did not
immediately respond to requests for comment.
(Reporting by Abigail Summerville in New York; Editing by Sharon
Singleton)
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