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Skip to main content CONTINUE TO SITE ➞ DON’T MISS TOMORROW’S GROCERY INDUSTRY NEWS Let Grocery Dive’s free newsletter keep you informed, straight from your inbox. By signing up to receive our newsletter, you agree to our Terms of Use and Privacy Policy. You can unsubscribe at anytime. * Deep Dive * Opinion * Library * Events * Press Releases * Topics Subscribe * Search * Subscribe Search * Center Store * E-commerce * Alternative Formats * Finances & Deals * Fresh Food * Technology * Foodservice * Corporate Ops An article from ONE YEAR LATER: THE HIGHS AND LOWS OF THE CONTROVERSIAL KROGER-ALBERTSONS MERGER The grocery sector has been replete with M&A activity in recent years, but nothing quite compares to the impact the pending mega-merger has had thus far. Published Oct. 16, 2023 Peyton Bigora Associate Editor * * * * * Courtesy of Kroger When Kroger and Albertsons announced their intention last October to combine into a single grocery company, the retailers instantly set off a firestorm of pushback from a wide range of critics worried the merger would squash competition and disenfranchise shoppers. One year later, the complex deal remains as controversial as ever. As the two grocery giants wait for the Federal Trade Commission to weigh in on their merger plan, they continue to face heavy opposition from state officials, unions, consumer groups and other critics determined to stop Kroger and Albertsons from winning clearance for their proposed $24.6 billion transaction. If allowed to proceed, the merger would meld two of the country’s largest grocery chains into a company that, with more than 4,000 supermarkets across the U.S., would rival Walmart and Amazon in scale. Kroger CEO Rodney McMullen and Albertsons CEO Vivek Sankaran have spent the past year touting benefits they say the merger would bring to consumers and workers, all the while expressing confidence that the deal will ultimately go through even as analysts have said winning FTC approval could be challenging for the retailers. Here are highlights of how Kroger and Albertsons’ deal has progressed over the past year and a look at the opposition the companies have encountered. TIMELINE OF THE KROGER-ALBERTSONS MERGER * October 2022 Kroger announced its agreement to purchase Albertsons and said it expected to close the deal in early 2024, subject to regulatory approval. Nearly two weeks later, Albertsons defended its upcoming $4 billion special dividend, which attorneys general for five states and Washington, D.C., claimed could weaken the grocer’s financial health and ability to compete even as it rewarded investors. * November 2022 Originally, Albertsons was slated to pay the dividend on Nov. 7, but legal battles and restraining orders postponed it. At the end of the month, Kroger and Albertsons’ chief executives testified during a U.S. Senate hearing that they did not intend to close any of the supermarkets they operate if the merger receives regulatory clearance. * December 2022 Kroger announced that the Federal Trade Commission requested more details — known as a “second request” — about the merger, indicating that the agency was taking a closer look at how the deal could impact competition. * January 2023 Albertsons announced it would proceed with its $4 billion special dividend after a months-long court battle. The Washington Supreme Court declined to take up an appeal by the state’s attorney general after a lower court ruling sided with the dividend payout. * February 2023 A Reuters report citing unnamed sources said Kroger and Albertsons were planning to divest between 250 and 300 stores in an effort to satisfy regulators. * May 2023 Kroger reiterated its pledge to not close locations or lay off workers if the federal government allows the merger to proceed. * September 2023 Kroger and Albertsons unveiled a $1.9 billion divestiture plan with C&S Wholesale Grocers that includes offloading 413 stores, eight distribution centers and three store banners across 17 states and Washington, D.C., to the wholesaler. Kroger and Albertsons’ CEOs have repeatedly stated this merger would lead to reduced food prices and that employees’ jobs with the retailers would be secure — but prominent industry players have remained unconvinced. By comparison, other mergers and acquisitions in the grocery sector in recent years, like Aldi’s plans to buy approximately 400 Winn-Dixie and Harveys Supermarket from Southeastern Grocers, have received far less or no pushback. OPPOSITION TO THE KROGER-ALBERTSONS MERGER Opposition to the pending Kroger-Albertsons mega-merger came almost immediately after the grocer’s announcement last year and has not ceased. Primarily, opposition from organizations and state officials stems from concerns that the deal could result in reduced competition, push prices up for consumers and lead to job cuts due to store closures. The National Grocers Association (NGA) was one of the first organizations to push back against the merger, with a statement from President and CEO Greg Ferrara expressing concern that the combined grocery giant could have “unprecedented dominance over the nation’s food supply chain,” negatively impacting suppliers and independent grocers trying to compete. That same day, the United Food and Commercial Workers International Union (UFCW) also voiced apprehension about the merger, noting it would oppose “any merger that threatens the jobs of America’s essential workers, union and non-union, and undermines our communities.” It didn’t take long before numerous state officials and state attorneys general as well as the International Brotherhood of Teamsters aimed to show the FTC that the pending Kroger-Albertsons merger would hurt the food retail industry. Last November, a month after the merger was announced, six local UFCW unions representing over 100,000 Kroger and Albertsons workers around the country called on regulators and members of Congres to oppose both the proposed merger as well as Albertsons’ $4 billion dividend. These efforts gained significant momentum, and in April, local UFCW unions held protests against the proposed merger under a coordinated effort led by Stop the Merger, a group of over 100 organizations opposing the deal. While Kroger and Albertsons’ deal with C&S Wholesale was meant to appease regulators, a coalition of seven local UFCW unions raised concerns about the plan, pointing to Haggen’s ill-fated purchase of divested Safeway stores in 2015 as part of the Albertsons-Safeway merger. Similar to the UFCW, the Teamsters union, which represents over 22,000 members who are Kroger and Albertsons employees, in June released a statement after months of discussion with both grocers over protecting the interest of Teamsters employees, but ultimately voiced opposition to the merger. In an August letter to FTC Chair Lina Khan, the secretaries of state for Colorado, Arizona, Vermont, Minnesota, Rhode Island, Maine and New Mexico said the pending merger would deprive consumers of grocery shopping options, reduce competition and hurt suppliers and workers. Kroger and Albertsons have also faced pushback from consumers when, earlier this year, a group of 25 grocery shoppers filed a federal lawsuit against the grocers in the U.S. District Court for the Northern District of California in a bid to prevent the planned merger. The lawsuit was dismissed nearly six months later as the plaintiffs made “no effort to explain how the merger would affect any one of them personally, in the area where they live and shop for groceries,” the judge wrote in the ruling. Show more Despite pushback, Kroger and Albertsons have held firm that their merger would not negatively impact the industry. Numerous times throughout the past year, Kroger executives have tried to sweeten the deal in blog posts and interviews meant to ease public concerns. The grocer pledged in August expanded employee resources if the merger gets approved. A month later, Kroger made a local sourcing commitment tied to the Albertsons merger. * post * share * tweet * print * email Filed Under: Corporate Operations GROCERY DIVE NEWS DELIVERED TO YOUR INBOX Get the free daily newsletter read by industry experts Email: * Select user consent: By signing up to receive our newsletter, you agree to our Terms of Use and Privacy Policy. You can unsubscribe at anytime. Sign up A valid email address is required. Please select at least one newsletter. EDITORS’ PICKS * Courtesy of Harris Teeter HARRIS TEETER REVAMPS ITS MARKETING APPROACH The Kroger-owned supermarket chain has rolled out a new logo and tagline as well as a modernized version of its familiar bread, fish and apple icon. By Sam Silverstein • March 21, 2023 * Explore the Trendline➔ Permission granted by Simbe Robotics Trendline IN-STORE TECHNOLOGY From smart carts to electronic shelf labels, grocers are adding new technology to their stores aimed at creating an engaging omnichannel experience. By Grocery Dive staff GET THE FREE NEWSLETTER Subscribe to Grocery Dive for top news, trends & analysis Email: * Select user consent: By signing up to receive our newsletter, you agree to our Terms of Use and Privacy Policy. You can unsubscribe at anytime. Sign up A valid email address is required. Please select at least one newsletter. MOST POPULAR 1. ShopRite closing string of stores in upstate New York 2. Aldi unveils Thanksgiving price reductions of up to 50% 3. One year later: The highs and lows of the controversial Kroger-Albertsons merger 4. 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