Kroger-Albertsons Merger Challenged In Court By FTC, 8 States

Core Viewpoint - The Federal Trade Commission (FTC), along with eight states and Washington, D.C., has filed a lawsuit to block Kroger's proposed $24.6 billion acquisition of Albertsons, citing anti-competitive concerns [1][2]. Group 1: Lawsuit Details - The FTC issued an administrative complaint and filed the lawsuit in the U.S. District Court for the District of Oregon [2]. - Attorney Generals from Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, Wyoming, and Washington, D.C. have joined the lawsuit [2]. - The FTC claims the merger would eliminate competition between the supermarket rivals, leading to higher grocery prices, reduced choices, and lower product quality, while also putting jobs at risk [2]. Group 2: Company Responses - Kroger stated that blocking the merger would harm consumers and workers, contradicting the FTC's intentions [2]. - Albertsons expressed disappointment over the FTC's stance, arguing that blocking the merger would strengthen larger multi-channel retailers like Amazon, Walmart, and Costco [2]. Group 3: Merger Background - In October 2022, Kroger agreed to acquire Albertsons for $24.6 billion, or $34.10 per share, with unanimous approval from both companies [4]. - The proposed merger has faced opposition from legislators and consumer groups, with lawsuits filed in Washington state and Colorado to block the deal [4]. - To address anti-competitive concerns, Kroger and Albertsons agreed to sell 413 stores and other assets to C&S Wholesale Grocers in September [4]. Group 4: Employment Impact - The merger would operate more than 5,000 stores across the country, employing over 700,000 workers, according to the FTC [3].