Kroger and Albertsons head to court to defend merger plan against US regulators’ objections

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Kroger and Albertsons defended their plan to merge – and tried to overcome the U.S. government’s objections – in a federal court hearing that began Monday.

Storefronts and signs of a Safeway and a QFC. Safeway is owned by Albertsons while QFC is owned by Kroger. in U.S. history in October 2022. They say joining together would help them rein in costs and better compete with big rivals like Walmart and Costco.. In the three-week hearing that opened Monday, the FTC is seeking a preliminary injunction that would block the deal while its complaint goes before an in-house administrative law judge.

The commission also alleges that workers’ wages and benefits would decline if Kroger and Albertsons no longer compete with each other. The labor union also expressed concern that potential store closures could create so-called food and pharmacy “deserts” for consumers. U.S. District Judge Adrienne Nelson is expected to hear from around 40 witnesses, including the CEOs of Kroger and Albertsons, before deciding whether to issue the injunction.

 

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