Washington AG Sues To Block Proposed Merger Of Kroger, Albertsons

(RTTNews) - Washington Attorney General Bob Ferguson filed a lawsuit on Monday to block the proposed largest retail grocery merger in the U.S. history between Kroger (KR) and Albertsons (ACI), claiming that it would raise prices and eventually harm the state's customers and workers. Ferguson explained his reasons for opposing the $25 billion merger by saying that it would "severely limit grocery store options" for Washington residents and "eliminate vital competition" among the stores. He added that, "without a competitive marketplace, the shoppers will pay higher prices at the grocery store."

Earlier, the supermarket chains had proposed to divest hundreds of stores to get federal approval. However, Ferguson argued that, "it does not change the fact that Kroger would still enjoy a near-monopoly in many markets in the state."

In a response to the lawsuit, a spokesperson on behalf of both stores said that they were "disappointed in Attorney General Ferguson's premature decision to file a lawsuit while the merger is still under regulatory review."

"The merging parties will vigorously defend this in court because we care deeply about our customers and the communities we serve, and this merger will result in the best outcomes for Washington consumers," Kroger and Albertsons said.

The deal announced in 2022 is yet to receive regulatory approval.

Upon conclusion of the merger, the two companies would have around 700,000 employees working in nearly 5,000 stores across 49 states generating more than $200 billion in annual sales.