PORTLAND, Ore. – Kroger CEO Rodney McMullen took the stand Wednesday at a pivotal hearing that could determine the fate of the proposed merger of two of the nation's top supermarket chains.
McMullen was the first witness for the defense as the Cincinnati-based supermarket giant made its case for its takeover of rival Albertsons.
The hearing in U.S. District Court is ostensibly to decide whether the Biden administration can be granted a preliminary injunction to halt the merger. That would allow the Federal Trade Commission to pursue its case against the merger in Washington D.C.
But Kroger has made clear the stakes are higher, with a Kroger lawyer declaring "this merger will not occur" if the injunction is granted. Antitrust experts say such an order would mean months of delay, which would be unacceptable to the companies.
McMullen compared the deal to three other “watershed” moments in Kroger’s history: an attempted takeover in 1988 that Kroger fought off, its merger with Fred Meyer in 1999 that expanded it westward and Amazon's 2017 takeover of Whole Foods that intensified industry competition.
McMullen, on the stand, pledged to cut grocery prices $1 billion starting on “Day 1” but noted many of the cuts will be made on the Albertsons side as its rival is about 10-12% more expensive than Kroger. He also pledged to preserve union jobs at Albertsons stores.
He cited the intense national competition in groceries for the company’s need to merge.
“If we raised our prices, we’d lose significant business,” he told the court. “When I got into the industry, A&P was the largest grocer. They don’t even exist anymore.”
The proceeding is scheduled to last through Sept. 13.
This article originally appeared on Cincinnati Enquirer: Kroger Albertsons merger: Rodney McMullen takes stand in hearing