Leaders of the two companies faced questions about how the deal could shake up the competitive landscape — and the prices consumers pay at the store.
The hearing offers a preview of the bigger antitrust battle ahead.
He argued that even as a combined company, Kroger and Albertsons will still be small compared to Walmart, Costco and Amazon. Union members also railed against the private equity firms that will benefit from the proposed $4 per share special dividend for Albertsons shareholders announced in conjunction with the deal. Cerberus Capital Management owns a 28.4% stake in Albertsons, according to Factset. For now, the dividend payout is on hold until at least Dec. 9 due to a ruling in Washington state court.
On Tuesday, McMullen said the company is in "active conversations" with unions about the deal and what it means for its workforce. He said the deal would ultimately expand opportunities for employees. Kroger will also spend $1 billion on higher wages and better benefits for store employees after the deal closes, he said.
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