Kroger Co shares slipped nearly 2% to $44.40 in late-morning trading on Tuesday after six US lawmakers wrote to the Federal Trade Commission (FTC) expressing their opposition to the supermarket and department store chain’s proposed $24.6-billion acquisition of grocery chain operator Albertsons, Reuters reported.
US senators, including Elizabeth Warren and Bernie Sanders, as well as representatives Alexandria Ocasio-Cortez and Summer Lee wrote in the letter that Kroger's proposal to divest 413 stores to C&S Wholesale Grocers would not address harms to consumers, workers, and the grocery industry if the merger is permitted.
Meanwhile, US congressmen Greg Landsman, Brian Fitzpatrick and Josh Gottheimer have sent letters to the FTC in support of the acquisition.
Kroger and Albertsons have stated that they expect to complete their merger by early 2024, once the FTC completes its antitrust review.
C&S, which operates primarily as a supplier rather than a grocery store operator, owns around 24 stores under the Grand Union and Piggly Wiggly brands.
Kroger had previously reported that it will not close any stores, distribution centers or manufacturing facilities or lay off any frontline associates as a result of the merger with Albertsons.