Yet Another Value Podcast
ICLE's Chief Economist Brian Albrecht evaluates $24.6 billion Kroger-Albertsons transaction
Dec 8, 2023
Brian Albrecht, Chief Economist of ICLE, discusses the $24.6 billion Kroger-Albertsons merger. Topics include: FTC's analytical framework, lack of government suits in grocery industry, updating precedent, market shares, delivery services impact, divestitures, waterbed effect, regional power vs. local power, and labor market impact.
01:00:20
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Quick takeaways
- Less emphasis should be placed on market shares in antitrust cases.
- Delivery services expand the market and induce more competition, countering market concentration.
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Introduction and Overview
This podcast episode discusses the potential merger between Kroger and Albertsons, focusing on the antitrust implications and the regulatory challenges the merger might face. The episode explores the historical approach of the FTC in evaluating grocery store mergers and market definitions. It highlights the changing landscape of the food retail industry, including the rise of warehouse club stores like Costco and the impact of online delivery services like Instacart. The podcast also examines the proposed divestiture package and the buyer, CNS Wholesale Grocer, discussing the potential risks and benefits. Overall, it provides a comprehensive overview of the merger and the key factors involved.
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