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Kroger, Albertsons merger lands in federal court

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August 29, 2024

The Federal Trade Commission and grocery chain Kroger are in court over the pending merger of Kroger and Albertsons as the federal agency believes the acquisition would eliminate industry competition and hurt consumers.

The federal court hearing involves a preliminary injunction sought by the FTC. The hearing is being overseen by Judge Adrienne Nelson of U.S. First District Court in Portland, Oregon. It is expected to take several weeks and is being closely watched by grocery workers as well, according to a New York Times report.

The merger "would eliminate the competition that shoppers and workers depend on in one fell swoop," Susan Musser, F.T.C.'s chief trial counsel, said in her opening statement, according to the news outlet. "This lawsuit is part of an effort aimed at helping Americans feed their families."

The $24.6 billion deal would be the biggest grocery merger in U.S. history but those oppose claim it will drive higher prices and worse working conditions. The FTC filed its lawsuit in February of this year.

The merger was announced in October, 2022. Kroger will buy Albertsons for $20 billion, which is a per share price of $34.10 and will also take on $4.7 billion of Albertsons debt.