Kroger CEO Rodney McMullen Updates Analysts on Merger
UNITED STATES - In Kroger’s recent first-quarter results earnings call, Chairman and Chief Executive Officer Rodney McMullen offered an update on the Albertsons/Kroger merger—which we have been following closely here at ANUK.
“We remain on track and continue to expect the transaction to close in early 2024. We are working cooperatively with the regulators and at the same time to identify potential buyers for the stores we expect to divest to obtain clearance for the transaction,” McMullen explained. “We will find well-capitalized buyers with experienced management teams that will maintain competitiveness. We are very pleased with the level of interest received thus far and we'll work toward finding a solution that benefits all stakeholders.”
We reported earlier in the year that both Kroger and Albertsons planned to divest stores to clear the antitrust review. Later, it was revealed that stores would be divested through a newly formed spinoff company named SpinCo.
“We are also committed to not closing any stores, distribution centers, or manufacturing facilities as a result of the merger,” added McMullen. “We are very proud of our ability to make such a commitment, especially at a time when many companies are announcing job cuts. And this is consistent with Kroger's track record in recent mergers.”
McMullen went on to express his excitement for the merger, noting that Kroger’s history of growth through mergers will hopefully put stakeholders’ minds at ease.
To read more about the earnings call, click here.
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