Kroger's $25-billion deal for grocery rival Albertsons blocked by US courts
The FTC argued at a three-week trial in Portland, Oregon, that the merger would eliminate head-to-head competition between the top two traditional grocery chains, leading to higher prices for shoppers and reduced bargaining leverage for unionized workers.
Separately on Tuesday, a Washington state court judge in Seattle also ruled to block the merger in a case brought by Attorney General Bob Ferguson, who had estimated half of all supermarkets there are owned by one of the two chains.The White House said after the ruling they were"proud to stand up against big corporate mergers that increase prices, undermine workers, and hurt small businesses.
"We believe we clearly outlined during the proceedings how the proposed merger would expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers' shopping experience," the Albertsons spokesperson said.The deal became a symbol of surging grocery costs. U.S. food prices have risen by 25% over the last four years, and while food inflation is showing signs of cooling in 2024, grocery bills remain a growing concern for shoppers.
Nelson, who Biden appointed to the federal bench in 2023, rejected those arguments, saying the efficiencies were not verifiable or specific to the deal. Kroger's promises to invest in lower prices and better benefits for employees would not be enforceable, she wrote. The agency did not present enough evidence to prove the theory, the judge said, but added that the FTC had presented a"compelling and logical case."
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