US Government Seeks to Block Kroger-Albertsons Merger

PORTLAND, Ore. - The federal government urged a U.S. District Court judge on Tuesday to temporarily prevent a proposed merger between Kroger and Albertsons, saying in closing arguments the combination would “almost certainly” benefit shareholders and not everyday shoppers.

U.S. District Judge Adrienne Nelson must now decide whether to grant the injunction while the FTC's anti-trust complaint goes goes before an in-house administrative law judge. Nelson said she would work “expeditiously” on her decision, but she didn't say when she would rule. But Wolf pushed back, saying Kroger and Albertsons were competing for the same customers as retailers that have lower labor costs because their workers aren't unionized.Kroger has said it plans to invest $1 billion in lower prices, if the merger goes through. Wolf said the company would focus on lowering prices “from day one.”

FTC attorneys have noted that the two supermarket chains currently compete in 22 states, closely matching each other on price, quality, private label products and services like store pickup. Shoppers benefit from that competition and would lose those benefits if the merger is allowed to proceed, they said.

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Albertsons and Kroger CEOs Testify in Court as FTC Seeks to Block MergerCEOs of Albertsons and Kroger testified in a federal court hearing in Portland, Oregon, as the Federal Trade Commission (FTC) seeks to block their proposed merger. The FTC argues that the merger would reduce competition and harm consumers. Meanwhile, the CEOs claimed that the combined company would lower prices and create jobs.
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Kroger sues government for blocking merger with AlbertsonsJustin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.
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