Supermarket chain Kroger made a new attempt to appease the U.S. regulators and push its merger with rival Albertsons over the finishing line. The company made an announcement last week in which it promised $1 billion in grocery price cuts after the process is completed.
Kroger and Albertsons initially announced its merger, which would give them more than 4,000 stores nationwide, in 2022. At the time, the two companies stated the agreement would allow them to be more competitive against retail giants like Walmart.
However, the merger was challenged in various instances and has been the subject of several lawsuits since then. There are fears that Kroger and Albertsons joining forces would have a negative impact on customers by pushing the prices of groceries.
Kroger initially promised an investment of $500 million to lower the grocery prices. It also said it would put aside $1 billion to increase the workers’ wages and sell 579 stores in 18 states to ease the concerns of U.S. regulators.
“After the merger closes, Kroger will invest $1 billion to lower Albertsons’ prices, consistent with Kroger’s track record of fighting inflation and providing value to customers,” Kroger spokesperson said in a mail statement sent to The Dallas Morning News.