Home » Business News • US business news » FTC sues to halt $24.6 billion Kroger-Albertsons merger
FTC sues to halt $24.6 billion Kroger-Albertsons merger
https://www.whatjobs.com/news/usa/us-business-news/ftc-sues-to-halt-24-6-billion-kroger-albertsons-merger
By Nithya Bose in Business News, posted February 27, 2024
The Federal Trade Commission has launched a lawsuit to block the $24.6 billion merger of leading grocery chains Kroger and Albertsons.
The agency cited concerns the deal would negatively impact consumers and employees by driving up grocery prices and reducing wages.
Attorneys general from nine jurisdictions, including Arizona, California, Washington D.C., Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming, supported the move.
This represents a significant intervention against the formation of one of the nation's largest grocery entities.
The FTC says the merger would exacerbate the financial burdens on American families by increasing the cost of everyday essentials while undermining the working conditions and compensation of grocery store employees.
Kroger said blocking the deal “will actually harm the very people the FTC purports to serve: America’s consumers and workers.”
The firm said: “The FTC’s decision makes it more likely that America’s consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts.”
Albertsons said federal authorities overlook the increasing influence of major retailers such as Walmart, Amazon, and Costco.
The company argues that this action will only fortify these larger competitors.
Block “will actually harm the very people the FTC purports to serve: America’s consumers and workers”
It said: “We are disappointed that the FTC continues to use the same outdated view of the U.S. grocery industry it used 20 years ago, and we look forward to presenting our arguments in Court.”
Looking to boost your online brand? Create your FREE business profile at WhatBiz? Here
The controversy over the merger emerges amid scrutiny from the Biden administration over various mergers and acquisitions, with a particular focus on consumer protection.
The proposed deal has been under regulatory review for over a year.
It faced opposition from labor unions and concerns over its potential to increase the market power of the combined entity, thereby affecting grocery prices and worker bargaining power.
The FTC's lawsuit also challenges the adequacy of Kroger's plan to divest over 400 stores to alleviate antitrust concerns.
The agency claims such a divestiture would not effectively maintain a competitive balance in the grocery market.
Follow us on X, LinkedIn, and Facebook
