Kroger Chair and CEO Rodney McMullen told SeafoodSource news that he is confident about the retailer’s position in its pending merger with Albertsons, as final arguments were starting Tuesday in the federal court case to decide whether it moves forward. Kroger merged with Fred Meyer in 1998, and Albertsons merged with Safeway in 2015, and had previously merged with Carrs in 1999.
McMullen said that the position of the companies is strong in their battle against Big Labor and big government, as they fight the U.S. Federal Trade Commission.
Rep. Mary Peltola has come out vocally against the merger of the grocery companies, which are trying to compete against a growing presence of Amazon and Walmart in Alaska’s food retail system. She has taken credit for stopping the companies from combining into one. Albertsons has already agreed to spin off Safeway/Carrs stores in Alaska in order for the merger to go through, but Democrats and labor unions still object.
“As we near the close of the FTC’s preliminary injunction hearing, we are confident in the facts and the strength of our position,” McMullen told the publication. “The food industry has always been competitive and will continue to be after this merger. We are committed to closing this merger because bringing Kroger and Albertsons together will provide meaningful and measurable benefits – lower prices, secure jobs and expanded access to fresh, affordable food – for customers, associates, and communities across the country.”
In lower court hearings, the companies claimed the merger would allow them to lower prices and more effectively compete with retail giants like Walmart, Costco, and Amazon, the Associated Press reported.
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