FTC, 9 State AGs Strike Back With Suit to Block $25B Merger of Grocery Chains Kroger and Albertsons

redstate.com

In October 2022, I shared a big announcement in the retail world: Two massive, U.S. grocery store chains, Kroger and Albertsons, had agreed to merge, in a deal worth nearly $25 billion:

CNBC:

Rival grocers Kroger and Albertsons on Friday announced plans to team up.

The companies said Kroger agreed to buy Albertsons for $34.10 a share in a deal valued at $24.6 billion. Albertsons shares had closed Thursday at $28.63 after surging on reports that a deal was imminent.

Kroger is the second-largest grocer by market share in the United States, behind Walmart, and Albertsons is fourth, after Costco. Together, Kroger and Albertsons would be a closer second to Walmart.

Both companies’ boards unanimously approved the agreement, which will also need regulatory approval.

It can’t be exaggerated how massive this new, “Frankenstein” monster of a food chain would be–and how it would affect how many Americans shop across the country. Here are the stats for both companies, via the AP:

Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Alberstons, based in Boise, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 710,000 people.

Tucked in the fine print of the news stories I read, though, was the foreshadowing of a potential snag in the companies’ plans … in the form of federal regulators filing a lawsuit. Now, that’s come to pass. The Federal Trade Commission (FTC) and nine state attorneys general filed a lawsuit Monday in federal court meant to block the merger of Kroger and Albertsons:

The Federal Trade Commission sued to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal would eliminate competition and lead to higher prices for millions of Americans.

It …. filed a lawsuit with the U.S. District Court in Oregon requesting a temporary injunction blocking the merger. That lawsuit was joined by the attorneys general of eight states and the District of Columbia.

In a press release, the agency explained why it chose to file the suit…