US Lawmakers Plan Hearing On Kroger, Albertsons' $25B Merger

Trending Investment Opportunities

U.S. senators inspecting antitrust issues are set to hold a hearing on grocery chain Kroger Co's KR plan to acquire rival Albertsons Companies Inc ACI in a $25 billion deal.
Chair of the Senate Judiciary Committee antitrust panel, Democratic Senator Amy Klobuchar, and Republican Senator Mike Lee expressed serious concerns about the merger, Reuters reported.
Related: Kroger, Albertsons Finally Seal The Rumored Merger Deal: See Highlights
"As food prices remain elevated, too many American families are struggling to put food on the table," the report noted that both senators wrote to Federal Trade Commission Chair Lina Khan.
"This merger raises considerable antitrust concerns."
The merger will bring under one roof nearly 5,000 stores.
The companies intend to divest some stores, with Albertsons ready to spin off a separate unit to ease antitrust concerns.
The senators pointed out the Trade Commission's requirement of selling 150 stores during Albertsons' 2015 purchase of Safeway. Albertsons re-purchased many stores later to prevent them from closing.
"We welcome the opportunity to outline how this transaction will benefit America's consumers by expanding access to fresh, affordable food," the report quoted a Kroger spokesperson.
Also Read: Albertsons Companies Q2 Earnings Top Estimates
Price Action: KR shares closed higher by 2.49% at $43.16 on Tuesday.