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Diving certificate:
- Kroger confirmed on Thursday that it plans to invest $1 billion in price reductions if the merger with Albertsons is completed.
- The figure is double the amount the grocer previously promised to ensure price reductions in connection with the planned mega-merger.
- Kroger doubles down on its promise to cut prices to sweeten the nearly $25 billion merger and appease regulators decided to stop the transaction.
Diving insight:
Kroger falls under even stricter control The company is trying to complete its merger with Albertsons as the grocery industry continues to grapple with consumer concerns about high food prices.
Kroger has long stressed that the merger with Albertsons would result in lower prices for grocery shoppers. When Kroger promised in February to cut prices after the planned merger with Albertsons, the grocery company noted that the strategy was “not new” because it had already cut prices after approving previous mergers.
“As we have prepared for integration since announcing our planned merger nearly two years ago, we have continued our ongoing work to confirm and increase efficiency opportunities that we can leverage to reinvest in customer prices, employee wages and the store experience,” Kroger said in an emailed statement Thursday.
The price cuts are part of a list of promises Kroger made in connection with the merger, including commitments to Expand employee resources And expand the local product range.
Last month, a judge in Colorado issued an order that temporarily blocks the planned mergerand the two grocers agreed not to complete their merger until the state court rules on a lawsuit filed by the Colorado Attorney General seeking to permanently block the deal.
Kroger and Albertsons are Preparing for a court hearing before the Federal Trade CommissionThe hearing is scheduled to begin on August 26 in the U.S. District Court for the District of Oregon in Portland.
