Kroger CEO Rodney McMullen told shareholders Thursday the company is "prepared to defend" its proposed $25 billion takeover of Albertsons as the grocer heads to court this summer to face federal and state antitrust regulators.
"We believe this merger creates the best environment in the near- and long-term to bring lower prices and more choices to more people," McMullen said during Kroger's annual meeting of shareholders, which was held virtually online. "We look forward to continuing to defend our proposed merger because we're confident it is the right thing for our customers, our associates and our communities."
McMullen repeated promises Kroger would cut grocery prices by $500 million after the merger closed and wouldn't lay off store employees as a result of the deal. He added that the company in April increased its store divestiture plan to mollify regulators and expressed confidence it would bolster its case. McMullen's comments were part of the company's business presentation and in response to questions submitted by shareholders.
Federal and state regulators have argued the deal would lead to less competition and higher prices for consumers and could hurt jobs for grocery workers.
After more than a year investigating, regulators at the Federal Trade Commission on Feb. 26 filed a federal lawsuit in U.S. District Court in Oregon to oppose the deal from taking place. The states of Washington and Colorado have filed separate legal challenges.
In other business, Kroger shareholders voted to elect the company's board of directors and approved the company's executive compensation with more than 91% of shares in favor. Four shareholder measures on increasing worker pay, additional disclosures on charitable contributions and generating reports on tobacco sales and environmental impacts failed with more than 82% of shares voting against.
On Thursday, Kroger also increased its quarterly dividend from 29 cents to 32 cents per share. The new payout will be made on Sept. 1 for shareholders of record as of Aug. 15.
This article originally appeared on Cincinnati Enquirer: Kroger's CEO: the grocer is 'prepared to defend' Albertsons merger