Albertsons and Kroger CEOs Testify in Court as FTC Seeks to Block Merger

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CEOs 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.

FILE - The exterior of Kroger’s fulfillment center is shown on July 27, 2022 in Dallas, Tex. FILE - Kroger CEO Rodney McMullen leaves federal court after testifying during a federal court hearing on Sept. 4, 2024, in Portland, Ore. The federal courthouse is reflected in the rear window as Albertsons CEO Vivek Sankaran enters a vehicle and leaves after testifying in a federal court hearing on Wednesday, Sept. 4, 2024, in Portland, Ore.

In testimony during the hearing, the CEOs of Albertsons and Kroger said the merged company would lower prices in a bid to retain customers. They also argued that the merger would boost growth, bolstering stores and union jobs.

The FTC and labor union leaders also argued that workers’ wages and benefits would decline if Kroger and Albertsons no longer compete with each other. They also expressed concern that potential store closures could create so-called food and pharmacy “deserts” for consumers.The FTC says C&S is ill-prepared to take on those stores.

The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the FTC’s lawsuit on the commission’s side. Washington and

 

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