The U.S. Federal Trade Commission announced Monday its intent to block the merger of Kroger and Albertsons, asserting that the amalgamation of the two major grocers would lead to increased prices for consumers and reduced wages for workers.
In a statement, the FTC revealed it had filed an administrative complaint and authorized a federal court lawsuit to halt Kroger’s $24.6 billion acquisition of Albertsons, which would form one of the nation’s largest grocery chains. A bipartisan coalition of nine state attorneys general, including those from Arizona, California, Washington D.C., Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming, has joined the legal action.
“Kroger’s acquisition of Albertsons would result in additional price hikes for essential grocery items, further adding to the financial strain faced by consumers nationwide,” remarked Henry Liu, director of the FTC’s Bureau of Competition. “Essential grocery store employees would also be adversely affected by this deal, with the risk of reduced wages, benefits, and deteriorating working conditions.”
Kroger responded in a statement, contending that blocking the merger “will actually harm the very people the FTC purports to serve: America’s consumers and workers.”
“The FTC’s decision increases the likelihood of higher food prices and fewer grocery options for American consumers, particularly as communities across the country contend with rising inflation and food deserts,” the company stated.
Albertsons also issued a statement, accusing federal regulators of overlooking the growing dominance of larger retailers such as Walmart, Amazon, and Costco, and asserting that the decision would bolster them.
