Kroger CEO Defends $24.6 Billion Albertsons Merger, Largest in U.S. History

Sep 4, 2024, 10:04 PM

Kroger CEO Rodney McMullen defended the proposed $24.6 billion merger with Albertsons in court, arguing that it would allow the two supermarket chains to lower prices and better compete with retail giants like Walmart, Amazon, and Costco. McMullen attributed rising grocery prices to increasing costs for retailers and stated that the merger would provide national coverage, enhancing their competitive edge. The Federal Trade Commission (FTC) has raised concerns that the merger could eliminate competition and potentially raise grocery prices for consumers. McMullen countered that Albertsons' prices are currently 10-12% higher than Kroger's, suggesting that the merger would enable price reductions for consumers. The merger is considered the largest grocery chain merger in U.S. history.