Sens. Mike Lee, R-Utah, and Amy Klobuchar, D-Minn., the top lawmakers in the upper chamber’s antitrust committee, on Tuesday raised concerns over Albertsons’ merger with Kroger, questioning whether the companies can fulfill commitments to lower prices and increase employee wages, reports The Hill.
“The companies assure us that this is the merger that will make everything better,” Lee, ranking member of the Senate Judiciary Subcommittee on Competition Policy, Antitrust and Consumer Rights, said during a hearing on the planned $25 billion merger.
Read more: Kroger, Albertsons CEOs Face US Congressional Panel On Merger
“They have announced commitments to spend $500 million to lower prices, $1.3 billion to update their stores and a billion dollars to increase employee wages. Of course, they haven’t explained how we can be sure that these commitments will actually be fulfilled.”
Klobuchar, chair of the committee, said she worried the deal would mean a loss of competition in groceries and, potentially, higher costs at a time when inflation is already high.
“That’s why you’ve heard concern across the country about this transaction,” she said.
The deal will be reviewed by the Federal Trade Commission to ensure it is legal under antitrust law.
Stores under the Albertsons umbrella include Balducci’s, Haggen, Kings, Safeway, Star Market, Tom Thumb, United Supermarkets and Vons, among others. Kroger owns Baker’s, Dillons, Fred Meyer, King Soopers, Mariano’s, Pick’n Save and Ralphs.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI