Kroger, Albertsons Merger Goes To Court

The largest proposed grocery store merger in U.S. history is going to court. On one side are supermarket chains Kroger and Albertsons, which say their planned merger will help them compete against rivals like Costco, Dee-Ann Durbin reported for the Associated Press (AP).

Kroger and Albertsons—two of the largest grocery chains in the U.S.—announced in October 2022 that they planned to merge. I Photo: Albertsons Market Facebook

On the other side are antitrust regulators from the Federal Trade Commission (FTC), who argue that the merger would eliminate competition and raise grocery prices during a time of already high food price inflation.

Starting Monday, a federal district court judge in Portland, Oregon, will consider both sides and decide whether to grant the FTC’s request for a preliminary injunction.

An injunction would delay the merger while the FTC conducts an in-house case against the deal before an administrative law judge. Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s, and Harris Teeter.

Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel-Osco, and Shaw’s.

Together, the companies employ around 710,000 people. Kroger and Albertsons—two of the largest grocery chains in the U.S.—announced in October 2022 that they planned to merge.

The companies claim the $24.6 billion deal would help keep prices down by giving them more leverage with suppliers and allowing them to combine their store brands.