California Attorney General Rob Bonta has reportedly raised concerns regarding the planned acquisition of Albertsons Companies Inc ACI by Kroger Company KR.
The takeover, valued at $24.5 billion, is now reportedly under the scrutiny of the state's legal machinery. Bonta expressed uncertainty over the future course of action but hinted at the possibility of a lawsuit to prevent the deal, reported Reuters.
He raised various apprehensions, primarily focusing on potential negative consequences for California residents, including inflated consumer prices and diminished compensation to local farmers.
Unveiled to the public in October 2022, the merger seeks to establish a grocery empire encompassing close to 5,000 stores.
In anticipation of regulatory concerns, both companies divulged a strategy in September, proposing the sale of over 400 of their grocery outlets to C&S Wholesale Grocers.
Related: Kroger And Albertsons Seal The Deal: A $1.9B Sale To Change The Grocery Game
Another aspect Bonta's team is investigating revolves around the potential creation of "pharmacy deserts," making it challenging for urban and rural inhabitants to procure medications.
Also Read: Albertsons' Valuation Depends On Its Potential Merger With Kroger, Says Analyst
Price Action: KR shares closed higher by 0.16% at $44.26 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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