The U.S. Federal Trade Commission is filing a lawsuit to stop grocery chain Kroger’s $24.6 billion acquisition of Albertsons on the basis that it would decrease employee wages and increase prices for shoppers. Nine attorneys general from Arizona, California, Washington, D.C., Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming have joined the administration complaint.
“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,” said Henry Liu, director of the FTC’s Bureau of Competition. “Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
The potential merger was first announced in October 2022; however, federal and state regulators have been scrutinizing it for more than a year. Kroger’s CEO, Rodney McMullen, has previously said joining the companies would lead to lower prices, faster innovation and increased profitability.
In a statement Monday, Kroger rebuked the lawsuit, saying that halting the merger makes it more likely that product prices will increase and that there would be fewer grocery stores across communities. Albertsons stated that the merger would strengthen them. “We are disappointed that the FTC continues to use the same outdated view of the U.S. grocery industry it used 20 years ago, and we look forward to presenting our arguments in Court,” it said in a statement.
