Why does the US government think a Kroger-Albertsons merger would be bad for grocery shoppers?
Two of the biggest grocery chains in the United States had hoped to complete the largest supermarket merger in the country’s history this year
Kroger and Albertsons — two of the biggest grocery chains in the United States — had hoped to complete the largest supermarket merger in the country's history this year. But their plan to compete with big-box retailers by combining forces faces legal challenges that make it look far less likely, at least any time soon.
On Monday, the U.S. Federal Trade Commission filed an administrative complaint against Kroger's $24.6 billion deal to acquire Albertsons and a federal lawsuit that asks a judge to block the merger for now. Attorneys general from eight states and the District of Columbia joined the lawsuit lodged in Oregon.
Here's what to know about the proposed merger, what it might mean for shoppers — and why the U.S. government opposes it.
Most Americans have filled a basket at an Albertsons or a Kroger store even if the sign out front had a different name. Kroger, based in Cincinnati, Ohio, operates 2,750 stores in 35 states and the District of Columbia. The company's 19 brands include Ralphs, Smith’s, King Soopers, Fred Meyer, Food 4 Less, Mariano’s, Pick ’n Save and Harris Teeter. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states. Its 15 brands include Safeway, Jewel Osco, Vons, Acme and Shaw’s. Together, Kroger and Albertsons employ around 700,000 people.
Cities where Kroger-owned and Albertsons-owned stores now vie for customers include Los Angeles, Seattle, Portland, Denver, Phoenix, Dallas, Chicago and the District of Columbia.
Some labor unions and consumer advocacy groups predict the merger would result in store closures, leaving communities with
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