The Potential Impact Of The $24.6 Billion Kroger-albertsons Merger
Kroger, the grocery giant announced Friday that it would acquire Albertsons in a $24.6 million deal that could transform the American supermarket market. Officials will approve the deal, which would bring together two of America’s biggest supermarket chains and create a corporate giant that generates nearly $209 billion annually.
This acquisition was made partly to take on Walmart. It comes at a time when record inflation continues to squeeze people’s pockets and regulators are trying to limit the power of large corporations. There are many questions that remain about this potentially disruptive deal. These are just a few.
Kroger and Albertsons are merging.
Both retailers are looking to grow to compete with Walmart, which is the largest US grocer by revenue. Both retailers face new challenges due to rising inflation and long supply chain delays. Although Kroger’s financial results are strong, Albertsons stock fell about 10% over the past year.
Kroger was established in 1883 and operates over 2,750 grocery stores throughout the United States. Its headquarters is located in Cincinnati. The company has a market capitalization around $32 billion. Its brands include Harris Teeter, Dillons, Ralphs, and Ralphs.
Albertsons, which is based in Boise in Idaho and was founded in 1939, operates 2,200 supermarkets that are known as Albertsons and Safeway. Its market capitalization is approximately $15 billion.
The grocers announced that they will be able save millions on operating costs and have greater bargaining power with their suppliers together. Analysts believe that the deal will be driven by total cost savings. Retailers estimate they could save $1 billion.
What impact will this deal have on food prices?
Kroger and Albertsons claim that their larger size and bargaining power will allow them to lower prices and then pass the savings on to customers. However, lawmakers, regulators, and consumer advocates worry that companies may simply redirect profits to shareholders.
Orley C. Ashenfelter of Princeton and Daniel S. Hosken from the Federal Trade Commission conducted a 2008 study that found prices had increased between 3 to 7 percent in four of five mergers. However, the authors warned that this study did not reflect the full impact of all deals. It is not clear if the dynamics have changed over the years.
However, any price increase could cause a severe problem as food prices continue to rise. According to the Bureau of Labor Statistics, the cost of food in the United States increased 11 percent last month compared to the previous year.
On Friday, the companies suggested that there might not be a single cost-savings strategy for everyone.
In an analyst call, Rodney McMullen (Kroger’s chief executive) stated that pricing is determined market-by-market.
What will be the political response?
It is likely that the midterm elections will be hot because of the attention paid to inflation, food prices, and corporate consolidation. Independent of Vermont Senator Bernie Sanders called the deal an “absolute catastrophe”.
Mike Lee, the top Republican on the Senate antitrust subcommittee said Friday in a statement that he would do all he could to “protect consumers against anticompetitive mergers which could further exacerbate our financial strain in the grocery store checkout aisle.”
A White House official stated that the White House does not comment on specific transactions that might be subject to review federal agencies. Peter Kaplan, a spokesperson for the Federal Trade Commission declined to comment.
What are the plans of companies to placate regulators?
Kroger and Albertsons announced that they would sell their stores to rivals to address concerns raised by regulators about the overlap between the two grocers, especially on the West Coast. If necessary, they said they could also spin off as many as 375 stores to form a separate company.
However, analysts on Friday pressed Kroger executives to determine if the plan was adequate and questioned if they would be required sell more stores.
However, legal experts say it may be difficult for Kroger or Albertsons to argue that they can foster competition while simultaneously growing to take on Walmart.
“The argument kinda says we’re going down on a lot competition and there will only be a few big players who effectively compete to most consumers,” said Daniel Rubinfeld (a New York University law professor who has studied mergers).
Investors are not optimistic about the chances of a successful merger between these companies. Kroger shares ended Friday trading down 7 percent. Albertsons shares fell more than 8 percent.
What will regulators be looking for?
Over the last few decades, the grocery sector has been consolidated in large ways through mergers. Many have expressed concern that too many corporations hold too much power to set prices.
Kroger and Albertsons were among the most active acquirers of recent years. These include an $8 billion Fred Meyer deal (Kroger 1998), a $2.5 Billion Harris Teeter purchase (Kroger 2013), and a $9 Billion Safeway deal (Albertsons 2015).
Most likely, the F.T.C will examine what claims chains made about these earlier deals and whether they followed through. The F.T.C will also examine whether Kroger or Albertsons can make room for a viable competitor by selling stores in areas where they overlap.
These efforts have had a mixed record. These smaller competitors may not always be able to expand into these markets. Additionally, the sellers of those stores might not want a viable competitor.
Haggen, a Bellingham-based retailer, purchased more than 100 Albertsons stores to get approval for the Safeway merger.
Haggen filed for bankruptcy a year later and blamed Albertsons. (Albertsons later purchased 33 of the stores from the bankrupt company.
Both companies’ boards unanimously approved the agreement. The only thing left is regulatory approval.
It is not clear if the F.T.C. It is unclear if the F.T.C. A regulator may try to stop the merger. Companies will have to decide whether or not they want to go through the lengthy and expensive process of trying to prove that it is better for their shareholders, customers, and themselves. Sometimes they just walk away to avoid all the hassle.
F.T.C. A number of retail deals have been blocked by the F.T.C. After a federal judge ruled in favor the F.T.C’s blocking of their $3.5 billion agreement, Sysco and US Foods pulled out of their $3.5 Billion deal.
The F.T.C. also blocked a second attempt by Office Depot and Staples to merge that year. Office Depot and Staples were unable to merge again in the same year. Rite Aid and Walgreens pulled out of their $5 billion deal in 2017, before the F.T.C. Officially weigh in.
According to the terms of the deal, Kroger will pay Albertsons $600 Million if the deal is canceled due to antitrust issues.
Reporting was done by Jordyn Holman, Julie Creswell, David McCabe and Julie Creswell.
Cara Delevingne Does Hollywood Glamorous on the 2023 Oscars Red Carpet
Cara Delevingne Makes Her Oscars Red Carpet Debut in an Eye-Catching Gown featuring a Thigh-High Slit
Delevingne will also serve as a presenter at tonight’s show. Cara Delevingne brought an old Hollywood glamour to Sunday’s 2023 Oscar red carpet.
At this evening’s award show, The Only Murders in the Building star, who is presenting, looked stunning in her daring red Elie Saab gown and Bulgari jewels. Her one-shoulder dress featured a thigh-high slit that showcased her platform Stuart Weitzman heels.
Delevingne took her glamorous style to the next level with a shimmery eye and bright rosy lip, finishing off with her hair pulled back off her face for an effortlessly stylish finish.
Delevingne, styled by Mariel Haenn and Rob Zangardi, got ready for her big night with hairstylist Danielle Priano and makeup artist Hung Vanngo. Vanngo used NakedBeauty MD Damsk Rose Revitalizing Gold-Infused Hydrogel Eye Masks to hydrate and plump Delevingne’s eyes – the ideal start to a glamorous night and the foundation for her makeup look.
Delevingne has been making waves on red carpets this awards season. She looked stunningly glamorous on the 2023 SAG Awards red carpet.
At the award show, model-actress Carolina Herrera, 30, stunned in an eye-catching long sleeve jumpsuit featuring plunging neckline decorated with large rosette appliques from their Fall/Winter 2023 collection. Additionally, this designer piece featured an overskirt which the star proudly showed off while walking down the red carpet.
Delevingne finished off her ensemble with black satin Casadei platform sandals and an amazing 74.73 carat necklace made of De Beers diamonds!
“Excited to be attending my first @sagawards tonight as part of the nominated cast of @onlymurdershulu!” she posted on Instagram alongside a picture of herself wearing the award show look.
Before the event, she shared on her Instagram Stories a behind-the-scenes glimpse of her beauty prep with Dior Beauty and celebrity esthetician Sarah Akram. To top it off, she donned bold brows and an intense red lip for full glam perfection.
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Delevingne has never shied away from making daring fashion statements at red carpet events. Last year, she graced the MIPCOM 2022 Fremantle photocall in Cannes wearing a flowy black minidress with sweetheart neckline and cutouts, paired with black heels with ankle-cuff detail and delicate jewelry. Delevingne kept her makeup understated but glamorous with a nude lip and glowing cheeks.
Cara Delevingne Reveals She Cried Watching Rihanna Perform at Super Bowl: ‘I Felt So Proud’
The Only Murders in the Building star chose soft waves for her hairstyle, giving off an effortless aesthetic that complemented her breezy dress perfectly.
Delevingne also donned an all-black ensemble when she hit the red carpet at Paris Fashion Week last September.
Delevingne had earlier missed a New York Fashion Week event to honor her collaboration with late designer Karl Lagerfeld, Cara Loves Karl. However, she was present at the Paris party to commemorate this momentous milestone.
Delevingne donned an oversized tuxedo blazer adorned with a harness belt bearing her late designer’s name and atelier address. Finishing off the ensemble were red lips and thigh-high black boots.
On Thursday morning, Delevingne debuted another Cara Loves Karl ensemble on Instagram with a carousel of photos featuring an elegant black blazer, matching pants and classic pointed-toe pumps. She chose not to wear a blouse underneath the blazer to show off its plunging neckline.
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LA Outfielder Draws Shohei Ohtani and Justin Bieber Comparisons | Angels News
Draws Shohei Ohtani: Over the last couple of seasons, few MLB stars have garnered as much attention as Shohei Ohtani of the Los Angeles Angels. His production and dominance on the field has not been replicated in recent history and he looks set for possibly the largest contract ever when he hits free agency.
Being an international athlete from Japan, some might say his stature grows twice as fast as the average professional athlete. He’s currently representing his home country in the World Baseball Classic and they have yet to lose an official game with him leading the charge. If he can even grow any bigger than this right now, imagine what kind of legacy his name will carry if Japan were to win this entire tournament!
Ohtani has long since outgrown the title of professional baseball player, and more accurately describes himself as a global icon. Despite never making the playoffs thus far in his career, opposing franchises know what to expect when they encounter him on the field.
Bieber has sold approximately 150 million records during his music career and earned 26 Billboard Music Awards. He has performed on multiple world tours across various parts of Europe, further increasing his international fame.
Whitefield’s comparison of Ohtani to Bieber is a fitting compliment, given that Ohtani has only been with the Angels since 2018 and Bieber first burst onto the pop scene in 2010.
Malaysia Denies Hong Kong Historic Asian Games Double Double in Squash
After Hong Kong China upset India 2/0 to secure the women’s Asian Games Team Championship Squash title for the first time ever, Malaysia denied them a historic double by coming from behind and winning 2/1 in an exciting men’s final at Gelora Bung Karno Sports Complex in Jakarta, Indonesia.
The women’s final was a repeat of a qualifying tie 48 hours earlier in which Hong Kong, the second seeds, prevailed 2/1 over third seeds India to take pole position in Pool B.
India won the rematch in the final after pulling off an incredible upset, ousting defending champions Malaysia – led by newly-crowned ‘Greatest Player of All-Time’ Nicol David – who were seeded to take gold for a third consecutive time.
Unfortunately for the third seeds, Sunayna Kuruvilla could not reverse the outcome as she lost four games to Ho Tze-Lok before talented left-hander Annie Au secured gold for Hong Kong by defeating Indian top string Joshna Chinappa 11-3, 11-9, 11-5 in 28 minutes.
“HK team manager Rebecca Chiu expressed her pride in the girls,” who played well under pressure, adding, “I’m delighted for them and they certainly deserved this success.” Pictured above is the women’s presentation group from the 2002 Asian Games – congratulations!”
Hong Kong and Malaysia both advanced to the Jakarta men’s final unbeaten, hoping for their first-time title triumph.
At one point, it appeared a double was on the way when Yip Tsz Fung put Hong Kong ahead with four games to one over Malaysian Ivan Yuen after coming through an epic 20-18 second game.
With Malaysia on the brink of a thrilling comeback, team number one Nafiizwan Adnan (pictured above celebrating his triumph) defeated higher-ranked Max Lee 11-9, 11-7, 11-7.
Malaysia’s second string Eain Yow Ng – at 20 years old the youngest player in the squad – had never faced off against Hong Kong opponent Leo Au, the 2018 men’s individual gold medalist.
But in his biggest match yet, the young Malaysian truly came of age when he shutout Au in three games – 11-7, 11-7 and 11-4 – over 36 minutes to bring home gold for Malaysia.
“As a team,” exultant Ng (pictured above with his team-mates in the men’s presentation group) after their seventh consecutive win in the championship. “We came into this tournament knowing that we could win and it proved true for us.”
“I always felt confident that Nafiizwan would deliver a point for us and was just focused on my own game. However, I also did my homework well – doing lots of video analysis and beating the individual champion despite not playing in it!”
“I didn’t want to give up in my third Asiad without a fight. After being on the losing team twice already, I really gave it everything I had. Of course there was pressure when Ivan lost, but pressure is like dessert and that’s something that excites me!”
On Squash team finals day at Gelora Bung Karno Sports Complex, IOC President Thomas Bach was honored as guest of honor. Pictured below, Bach can be seen receiving a presentation from Asian Squash Federation President David Mui (far right).
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