In a vocal endorsement of the Federal Trade Commission’s (FTC) scrutiny into the proposed acquisition of Subway by private equity firm Roark Capital, Senator Elizabeth Warren took to X, the social media platform formerly known as Twitter, to express her approval on Sunday.
Subway, a renowned sandwich giant, had revealed in late August that it had entered into an agreement to sell the family-owned chain to Roark Capital in a deal reportedly exceeding $9 billion. Roark Capital, already holding ownership of well-known sandwich shops like Jimmy John’s, Arby’s, McAlister’s Deli, and Schlotzky’s, triggered concerns within the FTC regarding the potential creation of a monopoly in the fast-food industry, reported Fox News.
Warren, a Democratic Senator from Massachusetts and a prominent figure in advocating for antitrust measures, emphasized her support for the FTC’s investigation, expressing worries about the possibility of higher food prices for consumers resulting from the deal.
“We don’t need another private equity deal that could lead to higher food prices for consumers,” Warren posted on X. “The FTC is right to investigate whether the purchase of Subway by the same firm that owns Jimmy John’s and McAlister’s Deli creates a sandwich shop monopoly.”
The senator has consistently been a proponent of antitrust actions, frequently calling for FTC investigations into high-profile mergers and acquisitions. Notably, she has been an advocate for the ongoing investigation into the merger between Albertsons and Kroger.
Under the leadership of FTC Chair Lina Khan, the regulatory body has not yet successfully prevented any proposed mergers through legal means. The recent attempt to block Microsoft’s acquisition of Activision faced initial setbacks in court and is currently in the appellate process.
According to a report by Politico, mergers with a valuation surpassing $111 million typically undergo a 30-day review by either the FTC or the Department of Justice. Despite Subway and Roark’s unsuccessful attempt to expedite the process by adding an extra 30 days to the review period, the investigation is set to continue, as confirmed by a source familiar with the matter.
Source: Fox Business