Official company announcements, major news outlets (e.g., Reuters, Bloomberg)

Kroger and Albertsons Defend $24.6B Merger in Court Against FTC Objections on August 26

Aug 26, 2024, 06:09 PM

Kroger and Albertsons are defending their proposed $24.6 billion merger in federal court against objections from the U.S. Federal Trade Commission (FTC). The FTC argues that the merger would reduce competition, increase grocery prices, and weaken the bargaining power of unionized workers. The trial, taking place in Portland, Oregon, on August 26, is a significant test of FTC Chair Lina Khan's initiative to use antitrust laws to protect consumers and workers. Kroger and Albertsons announced their merger plans in October 2022, stating that the merger would help them compete with larger rivals like Walmart and Costco. They have also proposed selling off stores in overlapping markets to address regulatory concerns. The outcome of this trial could have wide-ranging implications for the grocery industry and consumer prices in the U.S.