Washington State AG lawsuit delays Kroger- Albertsons merger

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Washington State AG lawsuit delays Kroger- Albertsons merger

For over a year, Kroger and Albertsons have been on the verge of closing a merger deal worth $24.6 billion, but constant skepticism and opposition have kept it from happening, and both companies waiting for a decision from the Federal Trade Commission (FTC).

According to reports from Bloomberg News, the Washington State attorney general is expected to file a lawsuit to block the deal. 

The lawsuit was supposed to be filed in a state court on Thursday. The news comes after Axios reported that the Federal Trade Commission (FTC) was not expected to decide on the Kroger, Albertsons merger until February.

In December, the two grocers informed the FTC they had met all the antitrust requirements for the merger, including selling 413 Kroger and Albertsons stores to C&S Wholesale grocers. It was then up to the agency to decide by Dec. 15. 

The FTC has three options: close its investigation and let the deal proceed; ask for certain requirements before the merger is approved; or take legal action in the federal district court and block the deal.

But the FTC missed the Dec. 15 deadline and so far has delayed any action.

Supermarket News reports they received an email from Kroger regarding the Washington State lawsuit with the following statement:

“If the merger is blocked, the non-union retailers like Walmart and Amazon will become even more powerful and unaccountable – and that’s bad for everyone. Any decision to attempt to enjoin the transaction now would be premature as we are engaged in productive discussions with the FTC and state Attorneys General about how this merger will bring lower prices to more of America’s consumers who are still reeling from high grocery prices.”

Six U.S. lawmakers sent a letter to the FTC protesting the deal. Sens. Elizabeth Warren (D-Mass.), Mazie Hirono (D-Hawaii), Bernie Sanders (I-Vt.), and Cory Booker (D-N.J.) along with representatives Summer Lee (D-Pa.) and Alexandria Ocasio-Cortez (D-N.Y.) all signed the letter, which claims the divestiture of 413 Kroger and Albertsons stores to C&S Wholesale Grocers does not do enough to calm the negative impacts the merger would have on consumers, workers, and the grocery industry as a whole.

 

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