Kroger and Albertsons plan merger to combine 2 largest supermarket chains

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Kroger, which owns Fred Meyer, plans to buy Albertsons, which owns Safeway. The deal is likely to draw intense scrutiny from federal regulators, as it would form a new supermarket colossus at a time of soaring food costs.

Their tie-up would involve spinning off up to 375 stores into a separate company, the companies said., Kroger said it would “reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers” and invest $1 billion to raise wages and benefits for workers.

Antitrust regulators in the Biden administration have advocated for changes in the government’s approach to mergers, and they have pushed back against megadeals, citing outsize impact on competition and consumer prices.

 

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