Some Democrats in Congress call on FTC to block Albertsons-Kroger merger
The group of Democrats argue that the Albertsons-Kroger merger will hurt consumers, workers and suppliers
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A group of Democratic lawmakers is urging the Federal Trade Commission (FTC) to block Kroger’s planned $24.6 billion acquisition of Albertsons, arguing that a failure to do so will hurt consumers.
Sens. Elizabeth Warren, D-Mass., Mazie Hirono, D-Hawaii, Cory Booker, D-N.J., and Bernie Sanders, I-Vt., joined by Reps. Summer Lee, D-Pa., and Alexandria Ocasio-Cortez, D-N.Y., wrote to FTC Chair Lina Khan that the "merger will harm consumers, workers, farmers, and other food suppliers across the country."
The Democrats wrote about the plan by Albertsons and Kroger to sell 413 stores and other assets to C&S Wholesale Grocers "in an attempt to assuage competition concerns raised by the merger."
They added that the "divestiture plan will not ameliorate harms to consumers, workers, and the grocery industry as a whole if the merger is allowed. We urge you to oppose this proposed merger, regardless of the proposed divestiture."
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A group of Democrats in Congress is calling for the FTC to block the pending merger between Kroger and Albertsons. (Mark Felix/Bloomberg via Getty Images | Mario Tama via / Getty Images)
The FTC is reviewing Kroger’s $24.6 billion deal to purchase Albertsons for potential violations of antitrust laws. Kroger and Albertsons have indicated that they expect to complete their merger by early 2024 following the completion of the review.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ACI | ALBERTSONS COMPANIES | 20.57 | -0.15 | -0.72% |
| KR | THE KROGER CO. | 54.78 | -0.33 | -0.60% |
Another group of lawmakers, including Reps. Brian Fitzpatrick, R-Pa., Josh Gottheimer, D-N.J., and Greg Landsman, D-Ohio, wrote separately to the FTC in support of the merger.
The companies have defended their planned merger and contend that it will help lower prices, protect jobs and provide more choices for consumers.
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Sen. Elizabeth Warren was among the Democratic lawmakers urging the FTC to block the Albertsons-Kroger merger. (Evelyn Hockstein / Reuters Photos)
"Kroger’s merger with Albertsons will mean workers gain from $1 billion in higher wages, expanded benefits, long-term job security, and a strong unionized workforce. The merger will also mean lower prices and more choices for fresh food for customers and more investments in our communities," a Kroger spokesperson said in a statement to Reuters.
Kroger has said it won’t close any stores, distribution centers or manufacturing facilities or lay off any frontline associates as a result of the merger.
Albertsons has argued that Amazon, Walmart and other non-union retailers would be the primary benefactors if the FTC blocks the Albertsons-Kroger tie-up and that the merger would ensure neighborhood supermarkets can compete with big retailers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 186.24 | +1.51 | +0.82% |
| WMT | WALMART INC. | 59.82 | +0.11 | +0.18% |
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A representative for Albertsons told Reuters, "Albertsons merging with Kroger will expand competition, lower prices, protect union jobs, and enhance customers’ shopping experience."
Reuters contributed to this report.