A mega merger between two top grocery stores has been blocked by a federal judge.
Transcript:
Conway Gittens: Investors are taking the latest inflation numbers in stride, even as the report lifts hopes of a December interest rate cut. Consumer prices rose 0.3 percent in November, as expected, and gained 2.7 percent from a year ago. Notably, food inflation is still a problem. Food costs were up 2.4 percent compared to last year, in the biggest jump since January.
Sticking with the world of food and groceries – a mega supermarket merger has been blocked by the courts. The $25-billion marriage of Kroger’s and Albertson’s, which would have created the biggest supermarket merger ever, has been nixed. The ruling judge said the tie-up would have hurt competition and been a negative for consumers.
The consumer impact loomed large in the decision, with food inflation already making it hard to put food on the table. To assuage those concerns, Kroger had pledged to lower grocery bills by a billion dollars.
The two companies claimed the merger was necessary to fight competition from non-traditional grocery sellers like Walmart, Amazon, Costco and new players such as Aldi.
The Federal Trade Commission, several states, and both Republican and Democratic lawmakers opposed the deal.
Albertson’s is furious the merger has been blocked, blaming Kroger for not offering enough concessions. The combined entity would have had 5,000 locations across the country. Albertson’s is suing Kroger and wants payment of a $600 million merger termination fee.
Subscribe |
Earn. Live. Invest. |
TheStreet Pro |
#kroger #albertsons #grocery
source
