The Journal. The Biggest Supermarket Merger That Wasn’t
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Dec 12, 2024 
WSJ reporter Patrick Thomas, who covers the Kroger-Albertsons merger trial, delves into the dramatic fallout from a recent legal ruling that blocked a $20 billion merger attempt. He discusses the surprising conflicts between the two supermarket giants, including Albertsons' lawsuit against Kroger. The conversation highlights antitrust concerns and competition challenges posed by industry titans like Walmart and Amazon, painting a vivid picture of the current and future landscape of the grocery business.
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The Walmart Threat
- Kroger and Albertsons argued that their merger was necessary to compete with larger grocery retailers like Walmart.
- They emphasized Walmart's significant market share (over 20%) compared to their combined share (14%).
Walmart's Impact
- Kroger CEO, Rodney McMullen, recounted a pivotal moment in Dixon, Tennessee, during the 1990s.
- A nearby Walmart opening caused Kroger's sales to plummet, highlighting the threat of discount stores.
Judge Blocks Merger
- Judge Adrienne Nelson rejected the merger, siding with the FTC's concerns about reduced competition.
- She argued the merger would likely lead to higher consumer prices.