The deal, which is an attempt to beef up against deep-pocketed rivals Walmart and Amazon, is likely to elicit major antitrust inquiries from regulators.
By: RB NEWS
Kroger revealed plans to acquire Albertsons on Friday, in a deal that may transform the supermarket landscape in the United States.
However, the purchase, which values Albertsons at approximately $24.6 billion including debt, is likely to draw significant scrutiny from regulators who are concerned
about the ability of major corporations to control prices and have a history of blocking agreements that may directly effect consumers.
Kroger and Albertsons operate approximately 5,000 stores, as well as pharmacies and gas stations, across the country.
However, their total annual revenue of $209 billion in 2017 fell short of Walmart's annual grocery sales of approximately $218 billion.
The agreement will very probably undergo intense political and regulatory scrutiny, heightened by a global food security problem exacerbated by massive food price increases.
Kroger and Albertsons announced plans to sell shops to competitors and to spin off between 100 and 375 stores into a separate, stand-alone entity.
Lina Khan, the head of the Federal Trade Commission, which is anticipated to conduct an investigation into the transaction, has expressed grave worry about the consequences of corporate concentration.