Kroger and Albertsons have announced a definitive merger agreement, which will be the subject of a hearing before the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights in November.
Under the agreement, Kroger will pay about $24.6 billion and acquire about $4.7 billion of debt to acquire Albertsons. The companies plan to close the merger in early 2024.
“As the chair and ranking member of the Subcommittee on Competition Policy, Antitrust, and Consumer Rights, we have serious concerns about the proposed transaction between Kroger and Albertsons,” said Sens. Amy Klobuchar (D-MN) and Mike Lee (R-UT) in a news release.
“The grocery industry is essential, and we must ensure that it remains competitive so that American families can afford to put food on the table.”
J.P. Morgan analysts said the combined companies would account for around 13% of total food-at-home sales in the U.S. (after divesting about 400 stores). For comparison, Walmart accounts for about 22% of food-at-home sales.
