7 States Ask FTC to Block Kroger's $24.6 Billion Acquisition of Albertsons -- OPIS
17 August 2023 - 5:21AM
Dow Jones News
Seven states on Wednesday asked the Federal Trade Commission to
block Kroger Co.'s proposed $24.6 billion acquisition of Albertsons
Cos., saying the combined company would control a quarter of a U.S.
retail food market in which there is "already limited
competition."
Both companies also are large fuel retailers.
The acquisition would affect almost 5,000 stores in Arizona,
Colorado, Maine, Minnesota, New Mexico, Rhode Island and Vermont,
the states said in a letter to FTC Chair Lina Khan.
"Kroger-Albertsons will have no competitive incentive to bring
down prices," the states said, adding that during the "pandemic,
Kroger chose to increase executive compensation and buy back stock
to benefit shareholders, all while laying off workers and closing
stores.
"The truth is these corporations are only responsible to
shareholders, who stand to benefit from a $4 billion payout from a
merger while grocery store workers who stock shelves are unable to
pay for groceries themselves due to low wages."
The letter acknowledges that under the terms of the merger the
companies will need to divest up to 400 stores, but "it is likely
the corporations will target the lowest performing stores, often
those in low-income communities. This will certainly exacerbate
issues of food accessibility and affordability that already
exist."
State officials also allege the merger will harm growers and
shippers and put an "even larger strain" on families "struggling to
pay bills."
"We are strongly opposed to this merger and urge you to stop
this corporate consolidation that is draining Americans of their
hard-earned wages and livelihoods," the letter said.
The two grocery chains have said they expect the deal to close
next year following a regulatory review. It's uncertain how the
merger and divestitures will affect the fuel operations.
This content was created by Oil Price Information Service, which
is operated by Dow Jones & Co. OPIS is run independently from
Dow Jones Newswires and The Wall Street Journal.
--Reporting by Donna Harris, dharris@opisnet.com; Editing by
Jeff Barber, jbarber@opisnet.com
(END) Dow Jones Newswires
August 16, 2023 15:06 ET (19:06 GMT)
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