The Federal Trade Commission sued to block the largest proposed supermarket merger in U.S. history - Kroger Co.’s $24.6 billion acquisition of Albertsons Companies.
The FTC says the proposed deal will eliminate competition and raise grocery prices for millions of Americans, while harming tens of thousands of workers.
In a response, Kroger said the proposed merger will produce meaningful and measurable benefits for customers, associates and communities across the country. “The combined company committed that no stores, distribution centers or manufacturing facilities will close as a result of the merger, including those divested to C&S Wholesale Grocers,” according to a statement.
Kroger maintains that customers will benefit from lower prices and more choices following the merger close. The company said it is committed to investing $500 million to begin lowering prices day one post-close, and an additional $1.3 billion to improve Albertsons Cos.' stores.
Kroger said the FTC’s move “makes it more likely that America's consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts.”