Bernie Sanders blasts Kroger’s $24.6B Albertsons deal, calls it ‘absolute disaster’

[mystery-ak]

Bernie Sanders blasts Kroger’s $24.6B Albertsons deal, calls it ‘absolute disaster’

By Victoria Moorwood
Published: Oct. 15, 2022 at 9:28 PM CDT|Updated: 17 hours ago

CINCINNATI (ENQUIRER) - U.S. Sen. Bernie Sanders called Kroger’s latest move an “absolute disaster” after the Cincinnati-based grocery retailer announced its plan to take over Albertsons in a $24.6 billion deal on Friday, according to the Cincinnati Enquirer.

The combined sales of the two grocery store chains are nearly $210 billion, putting Kroger about $10 billion shy of U.S. food sales at Walmart, the world’s largest grocer.

In a tweet Friday, Sanders called on the White House to reject the merger.

“At a time when food prices are soaring as a result of corporate greed, it would be an absolute disaster to allow Kroger, the 2nd largest grocery store in America, to merge with Albertsons, the 4th largest grocery store in America,” the Vermont progressive wrote. “The Biden Administration must reject this deal.”

https://twitter.com/SenSanders/status/1580722266370822144

Sen. Elizabeth Warren reacted to the then-rumored merger in an interview with MSNBC on Thursday. The Massachusetts Democrat said the U.S. has failed to utilize antitrust laws for decades, the Enquirer reports.

“For example, with grocery stores, remember how many grocery stores there used to be? And now what you have is a handful of giant chains,” Warren said.

The senator said Kroger earned almost $900 million in the third quarter of 2021, more than three times the amount it made in the same time period in 2019.

“That’s because they have a lot of market dominance,” she said. “If we move in on antitrust law, break up these giant corporations, then we get real competition and then we get markets that are truly competitive.”

Kroger and Albertsons are expected to divest 100 to 375 stores to pacify antitrust concerns, leaving Kroger to operate more than 4,500 stores nationwide, according to the Enquirer. Albertsons’ investors will own a separate company that includes the divested stores.

Both stores currently employ a combined 710,000 associates and operate 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers in 48 states and Washington D.C.

https://www.fox19.com/2022/10/16/bernie-sanders-blasts-krogers-246b-albertsons-deal-calls-it-absolute-disaster/

[mountaineer]

The union supporters' kneejerk response is that the rich grow rich, the poor grow poorer. In the story I read about this a couple days ago, the grocery companies noted that increased efficiencies probably will lead to savings for the consumer, as well as better wages for the employees.

Oh.
Never mind.

[sneakypete]

At a time when food prices are soaring as a result of corporate greed,

No,you clueless old communist fool. Food prices are soaring for the same reason the prices on everything else are soarding. The DNC is in charge of the US Treasury and they are using it to buy votes faster than the US Treasury can print it.

[Fishrrman]

I realize this reply will go against the grain of most folks here, but I actually believe that Bernie the commie is RIGHT on this one.

Competition is good.

We don't need this "over-concentration" in the retail food business any more than we need it in most other businesses/industries.

Or should everything end up like Standard Oil...?

[mountaineer]

I agree that competition is good, but the grocery market already has a few mega-players.

... The deal will likely get heavy scrutiny from U.S. antitrust regulators, especially at a time of high food price inflation. The Justice Department and the Federal Trade Commission were already in the process of updating merger guidelines to better detect and prevent anticompetitive deals. In July, President Joe Biden signed an executive order promoting competition in business and calling for tougher scrutiny of mergers. ...

Together, the stores would control around 13% of the U.S. grocery market, assuming the sale or closure of around 400 stores for antitrust reasons, according to J.P. Morgan analyst Ken Goldman.

Still, that is a distant second to Walmart’s 22% share. Amazon, which bought Whole Foods in 2017, is also a growing player in the space, with 3% share. Warehouse store Costco controls 6%.

Value chains like Aldi and Dollar General __ which have a combined 4% market share __ have also been squeezing traditional grocers like Kroger and Albertsons, particularly as red-hot inflation pushes people to cut costs.  ...

Associated Press

[Wingnut]

Actually I do think this will be bad for the consumer.  I spent the early portion of my career selling product to drug and grocery chains, doth at the HQ and district levels.  Winn-Dixie, Albertsons, Publix, Jack Eckert, Rite-Aid, Big B drugs, Jewel/Eagle and many other smaller players I can't remember.   If this deal is alowed to go thru you can bet the consumer will not benefit.

[catfish1957]

I realize this reply will go against the grain of most folks here, but I actually believe that Bernie the commie is RIGHT on this one.

Competition is good.

We don't need this "over-concentration" in the retail food business any more than we need it in most other businesses/industries.

Or should everything end up like Standard Oil...?

Standard Oil? 

You realize that during the summer of 2020 when oil went down to zero/bbl., there were discussions that No. 1 XOM and No.2 CVX could go bust.  How about we do what's best for the investor sometimes?

You kneejerkers crack me up.