Kroger And Albertsons To Defend Merger Plan Against Regulators In US District Court

Kroger And Albertsons To Defend Merger Plan Against Regulators In US District Court

The two companies proposed the largest supermarket union in US history in October 2022

Kroger and Albertsons have approached the US District Court for the District of Oregon to defend their merger plan and overcome the US government's objections.

The companies had considered that their association would assist in reining in costs, and they could compete with rivals like Walmart and Costco.

However, the Federal Trade Commission (FTC) sued them by trying to block the deal.

It cited that the move would eliminate competition between the two and raise grocery prices at a time when people were already hit by inflation. The Commission added that the quality would suffer, and workers' wages and benefits would decline.

Together, the companies employ around 710,000 people.

The FTC sought a preliminary injunction to block the merger. Its complaint will go to the in-house administrative law judge.

In a three-week hearing, District Judge Adrienne Nelson will deal with 40 witnesses, including the CEOs of Kroger and Albertsons, before deciding on the injunction.

Meanwhile, the attorney generals of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming, have sided with the FTC.

Based in Cincinnati, Ohio, Kroger operates 2,800 stores in 35 states, including brands like Ralphs, Smith's and Harris Teeter.

Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw's.