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.
>> Kroger seeks to create grocery giant in $20B Albertsons bid <<
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.”
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.
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