By Jaclyn Peiser, The Washington PostA customer removes her purchases at a Kroger grocery store in Flowood, Miss.. The Federal Trade Commission on Feb. 16, 2024, sued to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal would eliminate competition and lead to higher prices for millions of Americans.
The announcement comes two months after the Federal Trade Commission, along with eight states and the District of Columbia, filed a suit to block the merger, claiming it would eliminate competition, threaten consumers’ access to affordable groceries and undermine labor unions. At the state level, Colorado and Washington also filed separate lawsuits to block the merger.
The divestiture will “ensure no stores will close as a result of the merger and that all front line associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages,” McMullen said. “Our proposed merger with Albertsons will bring lower prices and more choices to more customers and secure the long-term future of unionized grocery jobs.
In addition, Kroger will sell its Haggen banner to C&S, and C&S will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado.