Kroger CEO is confident about Albertsons deal
Kroger CEO Rodney McMullen discussed the company's proposed merger with rival grocery chain Albertsons with CNBC's Jim Cramer, saying he's confident about the deal despite the Federal Trade Commission's recent crackdown on mergers.
The rival grocers announced their plans to merge in October, proposing a $24.6 billion deal. McMullen said he thinks the government will approve the merger, saying it will only benefit customers and employees.
"We've invested and lowered our pricing for multiple years in a row, and that's one of the reasons why we're so confident when the FTC looks at the detail that we'll be able to share that the customer benefits, our associates benefit and the communities benefit from the merger," McMullen said, adding that he thinks the deal will allow the company to further invest in technology, like its online grocery business, as well as give employees further job security.
The merger would allow the companies to capture nearly 16% of the U.S. grocery market, according to market researcher Numerator.
Kroger is currently the second largest grocer by market share in the United States, behind Walmart , and Albertsons is fourth, behind No. 3 Costco. Together, the grocers would become a closer second to Walmart.
Source: CNBC
