CEOs of Kroger & Albertsons defend merger in trial
Kroger CEO Rodney McMullen and Albertsons CEO Vivek Sankaran spoke in the U.S. District Court in Portland, Oregon on Wednesday during week two of the trial to defend their $24.6 billion merger plan between both chains, Supermarket News reports.
McMullen said the merger would enable the combined companies to lower prices for consumers and that it would bring corporate jobs to Portland, according to the story.
Additionally, he said it would allow the two supermarket companies to more effectively compete with retail giants like Walmart and Amazon.
"The day that we merge is the day that we will begin lowering prices," McMullen said while under questioning by a lawyer representing his company.
Kroger's CEO was quoted as saying the company has been “very impressed” with the company Sankaran has built, according to the Oregonian. “Albertsons does some things better than Kroger that we can always learn from,” McMullen reportedly said.
The Federal Trade Commission(FTC) sued early this year to prevent the deal, alleging it would eliminate competition and raise grocery prices at a time of already high food price inflation.
During the trial, which began on August 26, the FTC reportedly accused Kroger of price gouging on products like eggs and milk.
Kroger's CEO responded to the argument by saying that Albertson's prices are 10-12% higher than Kroger's and that the merged company would try to reduce that disparity as part of a strategy for keeping customers.