Federal Trade Commission Sues To Stop Kroger-Albertsons Merger

The Federal Trade Commission sued Monday to block the $25 billion merger between grocery giants Albertsons and Kroger, calling the proposed deal anti-competitive.

The agency was joined by nine state attorneys general in the lawsuit, which adds further uncertainty to what would be the biggest grocery-industry merger in U.S. history. Both companies operate thousands of supermarkets across the country under a slew of brand names.

The FTC said combining the two companies under one roof would create higher prices for shoppers and lower wages for workers.

“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” Henry Liu, director of the FTC’s Bureau of Competition, said in a statement.

The agency’s commission voted 3-0 in favor of pursuing the complaint.

Kroger, whose brands include the Harris Teeter, King Soopers and Fred Meyer supermarket chains, said in a statement Monday that the FTC’s move would “hurt the very people the FTC purports to serve.”

“[O]ur proposed merger with Albertsons will mean even lower prices and more choices for America’s consumers,” the company maintained.

The FTC has taken a more critical stance of large mergers after being reshaped by President Joe Biden’s progressive appointees. The agency has spent more than a year investigating the proposed grocery merger and gathering evidence to determine what its impacts might be for the public.

The White House said it would not comment on pending litigation. But Jon Donenberg, deputy director for Biden’s National Economic Council, said that the president “supports fair and vigorous antitrust enforcement.”

“When large