FTC again probes Kroger's merger as the chain is set to lose $100M

The Federal Trade Commission has sent a second request for information to Kroger regarding its $24.6 billion merger with Albertsons while the Cincinnati-based company is set to lose $100 million after dropping Express Scripts. 

The merger — which is expected to finalize in 2024 — between the two grocery chains would nearly double their swath of pharmacy locations, and the combined revenue would bring the companies' prescription revenue closer to Walmart's ranking

"Kroger looks forward to realizing the compelling benefits this merger will offer, including enhancing competition, lowering prices for customers, improving access to fresh food, creating opportunities to continue investing in our associates and securing the long-term future of union jobs," the company said in a Dec. 6 news release. 

In late September, Kroger said Express Scripts' contract was "unsustainable" and ended its business with the pharmacy benefit manager. Despite raising its full-year revenue outlook, CFO Gary Millerchip said the decision will cost the company millions of dollars. 

"We expect this contract termination will reduce sales by about $100 million in Kroger's fiscal fourth quarter, impacting identical sales without fuel for the quarter by approximately 35 basis points," Mr. Millerchip said in a Dec. 6 investor call.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars