The CEO of the Kroger Company, Rodney McMullen, and his counterpart, Vivek Sankaran of Albertsons Cos., provided testimony at a hearing called by Senator Amy Klobuchar (D-MN).  Currently, Senator Klobuchar chairs the subcommittee on antitrust of the Senate Judiciary Committee.

The hearing was intended to evaluate the impact of the proposed transaction involving the two largest pure-play grocery chains. Both Kroger and Albertsons have agreed to divest stores before consummation of the $25 Billion transaction.

Senators representing both parties demanded reassurance that the proposed transaction would not result in store closures, higher prices to consumers and worker layoffs. All predictable outcomes.

It is evident that the acquisition of Albertsons by Kroger will lead to synergy and will benefit shareholders.  Reducing the number of potential stores will be detrimental to suppliers, including the egg industry, given the leverage exerted by a combined company with 5,000 stores and 13 percent of the grocery market.