US Senators Raise Red Flags over Albertsons/Kroger Merger
The proposed merger between Boise-based Albertsons Supermarkets and the larger Cincinnati-based Kroger chain must be fixed. Frankly, this merger is a bad idea that is not good for consumers or those two companies' workers. Proponents of the merger state that the combined companies will be able to take on Walmart and Amazon.
Who do they think they're kidding? We all know when companies merge, the first order of business is to trim the payroll. Large corporations have to justify the amount of money spent by cutting costs. What looks good on a balance sheet translates to a lost job for the supermarket worker.
Check Out 5 Shocking Reasons For Albertsons Not To Merge With Kroger
The Federal Trade Commission is currently reviewing the deal. Lawsuits have been filed against both companies in several states, which is never a good omen when looking to get federal approval. It is rare in Washington, DC, when Republicans and Democrats agree on something.
The proposed merger has united some of the most Liberal and Conservative United States Senators in rallying against it. How Conservative and Liberal? When was the last time Senator Elizabeth Warren, Senator Bernie Sanders, Senator Tom Cotton, and Senator Ted Cruz agreed on anything?
You can watch the interaction between Senator Cotton and the CEOs of both companies here.
The only folks benefiting from this merger are those on Wall Street, not State Street. Does anyone really believe that the folks in that Ohio city will have the same commitment to our state as our local company?
Kroger Says That Jobs Will Not Be Lost Due To The Merger
Kroger sent us this statement in regards to speculation surrounding the merger.
“We pursued this merger because of the meaningful benefits it will provide for all of our stakeholders – customers, associates and communities alike. We expect to deliver these benefits through our commitment to invest in lowering prices, improving the overall customer experience, increasing wages to expanding our industry leading benefits.
Kroger will not close any stores, distribution centers or manufacturing facilities as a result of this merger, including stores that may need to be divested to obtain regulatory approval. Kroger intends to position any store that is not part of the combined company for success going forward. Importantly, Kroger appreciates Albertsons’ history in Idaho and expects Albertsons to maintain offices in Boise.”