By Melissa Repko -
CNBC
The Federal Trade Commission (FTC) announced this Monday that it will file a lawsuit to stop the merger of Kroger and Albertsons, alleging that the union of these two large supermarket chains would result in higher prices for shoppers and lower wages for workers. employees.
The FTC said it issued an administrative complaint and authorized a lawsuit in federal court to stop Kroger's $24.6 billion acquisition of Albertsons, which would create one of the largest supermarkets in the United States.
A bipartisan group of nine attorneys general have joined the lawsuit, including those from Arizona, California, Washington DC, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming.
A man enters a Kroger store in Houston on September 9, 2022. Brandon Bell/Getty Images file
“Kroger's acquisition of Albertsons would cause additional price increases on everyday products,
further exacerbating the financial pressure
that consumers across the country are currently facing,” said Henry Liu, director of the Bureau of FTC jurisdiction.
“Essential grocery store workers would also suffer under this agreement, facing the threat of their wages declining, benefits decreasing, and working conditions deteriorating,” he added.
Kroger responded in a statement that stopping the merger “will harm the very people the FTC seeks to protect: America's consumers and workers.”