Kroger and Albertsons are spending billions to reward shareholders after their blocked merger

The grocery store operators had said they’d be able to cut prices by combining, but regulators and courts disagreed. Now they’re investing in stock buybacks.America’s two largest grocery store operators had argued that they’d be better able to lower prices for shoppers by joining forces. Doing so, they said, would boost their negotiating power with suppliers and make it easier to take on much bigger retailers that compete with them in grocery sales, such as Walmart, Costco and Amazon.

Kroger and Albertsons said Tuesday they are disappointed in the decisions and are reviewing their options. The Vanguard Group, the country’s largest mutual fund provider, and BlackRock, the world’s largest asset manager, with over $11.5 trillion under its supervision, have the largest stakes in Albertsons. Wall Street investment firm Cerberus Capital Management, Vanguard, BlackRock and billionaire investor Warren Buffett’s Berkshire Hathaway conglomerate are the top owners of Kroger shares.

In the meantime, consumer groups and labor advocates are hailing the blocked merger as a victory for shoppers and workers and as a vindication of the Biden administration’s antitrust efforts during its final weeks in office.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Court blocks Kroger's $25 billion acquisition of grocery rival AlbertsonsThe FTC argued the merger would eliminate head-to-head competition between the top two traditional grocery chains, leading to higher prices for shoppers.
Source: CNBC - 🏆 12. / 72 Read more »

Judge blocks Albertsons-Kroger $25 billion supermarket mergerRob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
Source: NBCNews - 🏆 10. / 86 Read more »

Court blocks Kroger’s $25 billion acquisition of rival AlbertsonsA U.S. judge blocked the pending $25 billion merger of U.S. grocery chains Kroger and Albertsons on Tuesday, siding with the U.S. Federal Trade Commission in...
Source: dallasnews - 🏆 18. / 71 Read more »

$25-billion Kroger-Albertsons merger plan is blocked by federal judgeA federal judge on Tuesday temporarily blocked what would be the largest supermarket merger in U.S. history, involving Kroger and Albertsons.
Source: latimes - 🏆 11. / 82 Read more »

$25 Billion Kroger-Albertsons Merger Blocked By Federal JudgeThe judge sided with the Federal Trade Commission, which raised antitrust concerns over the merger.
Source: Forbes - 🏆 394. / 53 Read more »