The U.S. Federal Trade Commission said Monday that it is suing to block the merger of Kroger and Albertsons, saying the combination of the two major grocers would result in higher prices for shoppers and lower wages for workers.
In a release, the FTC said it issued an administrative complaint and authorized a lawsuit in federal court to stop Kroger’s $24.6 billion acquisition of Albertsons, which would create one of the largest grocers in the country. A bipartisan group of nine attorneys general has joined the court complaint: from Arizona, California, Washington D.C., Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming.
“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,” said Henry Liu, director of the FTC’s Bureau of Competition. “Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
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