FTC files lawsuit to block Kroger-Albertsons merger

FTC Kroger-Albertson merger challenge overview: 

• Who: The Federal Trade Commission (FTC) filed a lawsuit to block Kroger’s proposed $24.6 billion acquisition of Albertsons. 
• Why: The FTC argues the proposed acquisition is anticompetitive and would raise grocery prices and harm workers. 
• Where: A merger between Albertsons and Kroger would affect consumers across the United States.

The Federal Trade Commission (FTC) filed a lawsuit to block a proposed $24.6 billion Kroger-Albertsons merger, arguing the deal is anticompetitive and would raise grocery prices and harm workers. 

The commission argues a merger between the two grocers would also lead to lower-quality products and services and narrow consumer shopping choices, according to a press release. 

“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” Henry Liu, director of the FTC’s bureau of competition, says in the press release. 

The FTC also claims a merger would immediately erase aggressive competition for workers and threaten their ability to secure higher wages, better benefits and improved working conditions.

“Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing and their working conditions deteriorating,” Liu says in a press release. 

Kroger, Albertsons propose divesting several hundred stores 

Kroger and Albertsons executives acknowledges their supermarkets are direct competitors, according to the FTC, which argues executives from both chains allegedly also conceded the acquisition is anticompetitive. 

In an effort to secure approval of the acquisition, the duo proposed divesting several hundred stores and other assets to C&S Wholesale Grocers, which operates only 23 supermarkets and one retail pharmacy, the FTC press release states. 

The FTC alleges the proposal falls far short of mitigating the lost competition between Kroger and Albertsons, with the lawsuit stating the proposed divestitures “still do not solve the multitude of competitive issues created by the proposed acquisition.”

Kroger and Albertsons announced their agreement back in 2022, saying at the time the deal would help them compete with other big retailers such as Walmart, Costco and Amazon, The Associated press reports. 

Washington Attorney General Bob Ferguson filed a similar complaint against Kroger and Albertsons earlier this year over claims a merger between the two grocers would, among other things, limit competition for grocery stores in many parts of the Evergreen State. 

What do you think about the proposed Kroger-Albertsons merger? Let us know in the comments.

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