It would likely take until 2024 to complete the merger.
“We’ve ended up not laying off anybody because what we found is that merged companies do things better than we do,” he said.Ĭongress would not be able to stop the merger, as those dealings are reviewed by the Federal Trade Commission and the Justice Department. McMullen said Kroger had no plans to lay off workers or close stories and pointed to a previous acquisition of Harris Teeter in 2014 where there were no layoffs or store closures. Josh Hawley, a Missouri Republican, pressed Kroger CEO Rodney McMullen on how many workers would be laid off if the two companies merged. “A lack of competition in the industry means higher prices and lower quality.”Īfter Kroger announced a $24.6 billion proposed purchase of its rival Albertsons last month, Klobuchar and Lee announced they planned to convene a hearing on the merger, citing concerns about already high food prices due to inflation, and their worry that a potential merger could worsen the problem.Īnother concern senators expressed was layoffs and store closures that could follow the merger. “Over the last decade, the grocery industry has become increasingly consolidated, with the top four chains now making up more than two-thirds of all grocery sales,” Klobuchar said. The two companies are attempting to merge. Mike Lee of Utah, grilled the CEOs of the Kroger Co., based in Cincinnati, and Albertsons Companies, Inc., based in Boise, Idaho. Amy Klobuchar, a Minnesota Democrat who chairs the Subcommittee on Competition Policy, Antitrust, and Consumer Rights, along with the top Republican on the panel, Sen. supermarket chains could mean a monopoly on groceries and lead to higher food prices for Americans. Senate Judiciary Committee panel raised concerns during a Tuesday hearing that a proposed merger between two of the largest U.S.
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