In the M&A scene Kroger is planning to buy Albertsons, they are claiming food costs will go down with this merger. We’ll just have to wait and see.
With inflation raging, Kroger on Friday pledged to use its proposed acquisition of rival Albertsons to reduce prices, Nathan writes.
That promise could help sell the deal. Still, experts and consumer watchdogs are split on whether a combined grocery chain behemoth should ultimately come to fruition.
Driving the news: On Thursday, Kroger confirmed its plans to buy Albertsons for about $24.6 billion, in a deal that pairs up two of the nation’s four largest food retailers.
State of play: Together, Kroger and Albertsons have about 5,000 stores, 4,000 pharmacies and about 2,000 fuel centers — not to mention dozens of distribution centers and manufacturing plants.
Yes, but: Consumer watchdogs are questioning Kroger’s sincerity, expressing concern about the impact on customers already grappling with surging food inflation.
What to watch for: Whether the Biden administration seeks to block the deal or extract concessions like the divestiture of sales.Axios Closer By Hope King and Nathan Bomey · Oct 14, 2022