FTC, state AGs sue to block Kroger-Albertsons merger

The Federal Trade Commission (FTC) says Kroger’s $24.6 billion supermarket merger proposal could stifle competition, lead to higher prices and harm workers. The company filed a lawsuit seeking an injunction against the acquisition of Sons.

Nine bipartisan attorneys general from Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming joined the FTC in the lawsuit.

“This supermarket megamerger comes at a time when American consumers have seen their grocery prices steadily rise over the past few years. Kroger’s acquisition of Albertsons is expected to increase grocery prices for everyday staples. will lead to further price increases, further exacerbating the financial burden that consumers across the country face today,” said Henry Liu, director of the FTC’s Bureau of Competition.

Kroger, which operates several regional brands such as Harris Teeter, and Albertsons, which operates regional brands such as Safeway, are two of the largest competitors in the grocery industry.

“Arizona residents in rural and urban areas alike are seriously concerned about the potential for dramatic changes to their daily lives if this merger goes through,” said Arizona Attorney General Chris Mays (D). It’s clear that there is,” he said.

“Bottom line: This merger will benefit the shareholders of these companies, not ordinary Arizonans. We are proud to litigate to stop the merger.”

A merger between Kroger and Albertsons would bring more than 5,000 stores in 48 states under one roof, raising concerns from federal regulators, lawmakers and consumer advocates.

Sen. Elizabeth Warren (D-Mass.) said, “Big grocery chains are driving up prices for American families, and the Kroger-Albertsons merger will result in higher prices for consumers, store closures, and lower wages for workers.” ,” he wrote on Platform X. Formerly known as Twitter. “By blocking this deal, the @FTC is fighting to protect workers’ jobs and lower food prices.”

Major supermarket chains say the merger is necessary to compete with Amazon, Walmart and Costco, which are increasingly powerful in the industry.

“If the Federal Trade Commission succeeds in blocking this merger, it will harm customers and strengthen the large multichannel retailers like Amazon, Walmart, and Costco that the FTC claims to regulate. An Albertsons spokesperson said in a statement that the company continues to build on its growing dominance in the grocery industry.

A Kroger spokesperson said the decision “allows Walmart, Costco, and Amazon to further increase their overwhelming and growing control over the grocery industry and overpowers large non-union retailers.” We just need to strengthen it.”

Updated at 12:47 p.m.