U.S. Sues To Block Merger Of Grocery Giants Kroger And Albertsons

The Federal Trade Commission (FTC) has taken legal action to block the proposed merger between grocery giants Kroger and Albertsons, asserting that the $24.6 billion deal would stifle competition and result in higher prices for millions of Americans.

Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states under banners such as Safeway, Jewel Osco, and Shaw’s, collectively employing around 700,000 individuals. I Photo: Like_the_Grand_Canyon Flickr

The administrative complaint filed by the FTC on Monday will be reviewed by an administrative law judge within the agency.

Additionally, the FTC filed a lawsuit in the US District Court in Oregon seeking a temporary injunction to halt the merger, a move supported by the attorneys general of eight states and the District of Columbia.

Kroger and Albertsons, two of the largest grocers in the nation, announced their intention to merge in October 2022, citing the need to enhance competitiveness against major rivals such as Walmart, Amazon, and Costco.

Together, the combined entity would control approximately 13% of the US grocery market, with Walmart leading at 22%, according to J.P. Morgan analyst Ken Goldman.

Kroger, headquartered in Cincinnati, Ohio, operates 2,750 stores across 35 states and the District of Columbia under various brands, including Ralphs, Smith’s, and Harris Teeter.

Meanwhile, Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states under banners such as Safeway, Jewel Osco, and Shaw’s, collectively employing around 700,000 individuals.

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