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FTC Moves to Block Kroger-Albertsons Merger
Joined by nine state attorneys general, the Federal Trade Commission said Monday it had sued to block the Kroger Company’s $24.6-billion acquisition of the Albertsons Companies, Inc., alleging that the deal is anticompetitive. The merger would be the largest the supermarket sector has seen.
In its complaint filed in federal court, the FTC charged that the proposed deal would lead to higher prices for groceries and other essential household items. The loss of competition will also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries, the complaint said.
“This supermarket mega-merger comes as American consumers have seen the cost of groceries rise steadily over the past few years,” said Henry Liu, Director of the FTC’s Bureau of Competition. “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. Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
In a statement, Kroger responded that blocking the merger “will actually harm the very people the FTC purports to serve: America’s consumers and workers.”
- ◦Sale/Acquisition
- ◦Policy/Gov't
