The Federal Trade Commission on Monday sued to block the merger between grocery-store chains Kroger Co. and Albertsons Cos. Inc., saying the deal would stifle competition, raise grocery prices and harm workers and product quality.
Nine attorneys general — from Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, Wyoming and the District of Columbia — are also joining the complaint against the $24.6 billion deal, which the FTC would be the biggest supermarket merger in the nation’s history.
“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years,” Henry Liu, director of the FTC’s Bureau of Competition, said in a statement. “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,” he continued.
The FTC also alleged that Kroger
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and Albertsons
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efforts to offload several hundred stores to appease regulatory concerns was insufficient.
Kroger’s stock fell 0.9% on the news, while Albertsons was flat.