Kroger-Albertsons Deal Should Be Blocked, State Officials Urge

Officials in seven Democratic-led states pushed the FTC to block Kroger Co.'s proposed $24.6 billion acquisition of rival grocery giant Albertsons Cos., arguing the combined entity would control nearly a quarter of the food retail market.

In a Wednesday letter to Federal Trade Commission Chair Lina Khan, the secretaries of state for Colorado, Rhode Island, Arizona, Vermont, Minnesota, Maine, and New Mexico questioned Kroger’s commitment to passing any merger-related retail price savings through to consumers. They also raised flags that the companies’ proposal to spin off up to 400 stores to satisfy competitive concerns could exacerbate issues of food accessibility and affordability in low-income communities.

The secretaries’ letter is the most recent advocacy against the merger, which has engendered significant congressional scrutiny, including criticism from Sen. Elizabeth Warren (D-Mass.), Sen. Bernie Sanders (I-Vt.), and Democratic Reps. Jan Schakowsky (Ill.), and Adam Schiff (Calif.).

In contrast, Rep. Greg Landsman (D-Ohio), in a letter to Khan in June, threw his support behind the deal, in part because it could help Kroger become the largest union company in the country. The United Food and Commercial Workers, which represents several hundred thousand Kroger employees, opposes the merger.

“This corporate merger will put an even larger strain on American families who are already struggling to pay the bills and keep food on the table,” the secretaries wrote. “Government must stand up to corporate greed as it has done in the past to ensure there is a competitive marketplace for essential goods and services.”

Local farmers, suppliers, and small businesses could also be in harm’s way, the secretaries say. The merger, which is currently under FTC investigation, could give the grocery chain the ability to dictate prices, forcing growers and shippers to cut their workers’ wages, they argued.

Kroger disputed the arguments.

“Kroger joining with Albertsons will mean lower prices and more choices for more customers in more communities, higher wages and more industry-leading benefits for associates and growing union jobs,” the company said in a statement. “The only parties who would benefit if this merger is not completed are large, non-unionized competitors such as Walmart and Amazon.”