•Press Release Food Prices Labor Labor Unions
This week two different courts weighed in against the $25 billion merger between Albertsons and Kroger. The rulings effectively ended the proposed merger; Albertsons has announced a plan to sue Kroger over the failure of the deal.
In response, CEPR Co-Director Eileen Appelbaum released the following statement:
“The demise of the Albertsons-Kroger merger is great news for grocery workers and consumers. This is a victory for the United Food and Commercial Workers union (UCFW) and the other labor unions and consumer groups that worked to build opposition to the deal. It is also a testament to the vision of Lina Khan at the Federal Trade Commission. Under her watch, the agency has dedicated significant resources to examining the harmful effects of corporate consolidation.
“From the outset, it was clear that this deal was geared around enriching Cerberus, the private equity giant that owns a substantial stake in Albertsons. As we pointed out at the time, the merger included a massive dividend payment to Cerberus and other Wall Street investors – a move that would saddle the company with even more debt. This is an essential part of the dangerous private equity playbook.
“The unions that helped scuttle this mega-merger scored a major victory against the Wall Street investors who have made billions by hollowing out and selling off companies.”
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