DEE-ANN DURBINWho is Kroger merging with? The grocery store chain wants to merge with Albertsons, and is defending its plan in federal court.
Federal regulators argue that combining the two chains would be bad for consumers and workers by eliminating competition. The companies say a merger would help them better compete with big retailers like Walmart, Costco and Amazon. The FTC argued that Kroger and Albertsons currently compete in 22 states, closely matching each other on price, quality, private label products and services like store pickup. A merger would eliminate that competition and raise prices for already struggling consumers, the government said. The FTC also said the merger would hurt workers since Kroger and Albertsons would no longer compete to hire them.
Under the merger agreement, Kroger and Albertsons would sell 579 stores in places where their locations overlap to C&S Wholesale Grocers, a New Hampshire-based supplier to independent supermarkets that also owns the Grand Union and Piggly Wiggly store brands.
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