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Kroger CEO Rodney McMullen on Thursday repeated that the Cincinnati-based supermarket giant was aiming to close its $25 billion deal to acquire Albertsons.
What's new was that Kroger disclosed the company had “certified substantial compliance” as of Nov. 15 with the Federal Trade Commission. The move could prompt a decision by Dec. 15 by the antitrust regulator to decide whether to approve or fight one of the largest retail mergers ever.
“We continue to work cooperatively with the FTC in its review of the transaction,” McMullen told Wall Street analysts on a conference call. “This step keeps us on track to close our proposed merger with Albertsons in early 2024.”
The disclosure comes weeks after Federal Trade Commission Chair Lina Khan told local news media in Denver the agency might not finish its review until 2024. Her comments followed a local "listening session" held with Colorado Attorney General Phil Weiser, according to 9NEWS in Denver.
Christopher Jones, the senior vice president of government relations & counsel at trade group the National Grocers Association, told The Cincinnati Enquirer, part of the USA TODAY Network, the FTC’s review of the mega-merger has been long – and justifiably so.
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“The merger of the nation's two largest conventional grocery chains presents substantial competitive concerns,” Jones said. “To prevent anticompetitive behaviors, it's crucial that the FTC thoroughly scrutinize this transaction while revisiting and reinforcing antitrust laws.”
So what does the latest disclosure mean for the controversial merger?
Here’s what we know:
What is the status of the Kroger-Albertsons proposal?
Under The Hart-Scott-Rodino Act of 1976, there’s a 30-day waiting period for some large mergers and acquisitions after a premerger notification is filed with regulators. If regulators take no action, then the companies are free to complete their deal.
But if the regulatory agency conducting the antitrust review decides it needs more information, it sends the merging parties a “second request” for that data. Such a move stops the clock for any regulatory deadlines to decide whether to approve or fight a proposed merger.
Kroger disclosed in December 2022 that the FTC had made a second request and has spent the past year providing information in a bid to mollify regulators’ questions and concerns about the deal.
What does the latest disclosure mean?
The latest disclosure means Kroger is attempting to restart the clock by asserting it has provided enough information to answer the FTC’s questions from its “second request.”