Last week we discussed the announcement of a $24.6 billion merger deal between Kroger and Albertsons supermarkets {Go Deep}. The majority stockholders in both companies are institutional investment groups, Blackrock, Vanguard and Cerberus.
The merger would consolidate the second and third largest food retailers in the U.S. and would certainly dilute the competitive dynamic amid the supermarket industry. Concern over price controls and decreased competition has now arrived on the desks of DC legislators who are reviewing the deal.
(Reuters) – […] U.S. Democratic Senator Amy Klobuchar and Republican Senator Mike Lee were quick to say that they would hold a hearing to discuss the merger. A European interloper could make deal plans even harder.
Frans Muller, Chief Executive of Stop & Shop owner Ahold Delhaize (AD.AS), has made no secret of his desire to consolidate U.S. grocers. The Netherlands-based firm is already the fourth largest grocery chain. If it managed to cobble together a better offer than Kroger’s bid for Albertsons, it would become the second largest supermarket. Plane spotters tracked two Albertsons jets next to Ahold Delhaize’s U.S. base in Massachusetts in early August. Ahold declined to comment.


