According to numerous outlets, a federal judge has halted the $24.6 billion merger of grocery chains Kroger and Albertsons. The Federal Trade Commission had previously argued that the deal would raise prices by eliminating head-to-head competition, and also weaken union bargaining power.
The ruling Tuesday by Judge Adrienne Nelson of the U.S. District Court in Portland, Oregon, notes that “supermarkets are distinct from other grocery retailers.” And as GlobeSt.com previously reported, the FTC has said that the proposed deal will eliminate fierce competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items for millions of Americans.
“The loss of competition will also lead to lower quality products and services, while also narrowing consumers' choices for where to shop for groceries. For thousands of grocery store workers, Kroger's proposed acquisition of Albertsons would immediately erase aggressive competition for workers, threatening the ability of employees to secure higher wages, better benefits, and improved working conditions,” the agency previously wrote.
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The deal is said to be potentially the largest supermarket merger in U.S. history. “This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years. 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, has previously said. “Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
We will update this story as more information becomes available.
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