Current:Home > StocksKroger and Albertsons prepare to make a final federal court argument for their merger -消息
Kroger and Albertsons prepare to make a final federal court argument for their merger
Robert Brown View
Date:2025-04-07 20:30:26
PORTLAND, Ore. (AP) — Kroger and Albertsons were expected to present their closing arguments Tuesday in a U.S. District Court hearing on their proposed merger, which the federal government hopes to block.
Over the course of the three-week hearing in Portland, Oregon, the two companies have insisted that merging would allow them to lower prices and more effectively compete with retail giants like Walmart and Amazon.
The Federal Trade Commission argued that the deal would eliminate competition and lead to higher food prices for already struggling customers.
In 2022, Kroger and Albertsons proposed what would be the largest supermarket merger in U.S. history. But the FTC sued to prevent the $24.6 billion deal.
The FTC wants U.S. District Judge Adrienne Nelson to issue a preliminary injunction that would block the deal while its complaint goes before an in-house administrative law judge.
In testimony during the hearing, the CEOs of Albertsons and Kroger said the merged company would lower prices in a bid to retain customers. They also argued that the merger would boost growth, bolstering stores and union jobs.
FTC attorneys have noted that the two supermarket chains currently compete in 22 states, closely matching each other on price, quality, private label products and services like store pickup. Shoppers benefit from that competition and would lose those benefits if the merger is allowed to proceed, they said.
The FTC and labor union leaders also argued that workers’ wages and benefits would decline if Kroger and Albertsons no longer compete with each other. They also expressed concern that potential store closures could create so-called food and pharmacy “deserts” for consumers.
Under the deal, Kroger and Albertsons would sell 579 stores in places where their locations overlap to C&S Wholesale Grocers, a New Hampshire-based supplier to independent supermarkets that also owns the Grand Union and Piggly Wiggly store brands.
The FTC says C&S is ill-prepared to take on those stores. Laura Hall, the FTC’s senior trial counsel, cited internal documents that indicated C&S executives were skeptical about the quality of the stores they would get and may want the option to sell or close them.
But C&S CEO Eric Winn testified that he thinks his company can be successful in the venture.
The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the case on the FTC’s side. Washington and Colorado filed separate cases in state courts seeking to block the merger.
Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together, the companies employ around 710,000 people.
If Judge Nelson agrees to issue the injunction, the FTC plans to hold the in-house hearings starting Oct. 1. Kroger sued the FTC last month, however, alleging the agency’s internal proceedings are unconstitutional and saying it wants the merger’s merits decided in federal court. That lawsuit was filed in federal court in Ohio.
The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the FTC’s lawsuit on the commission’s side. Washington and Colorado filed separate cases in state courts seeking to block the merger. Washington’s case opened in Seattle on Monday. ___
Durbin reported from Detroit.
veryGood! (974)
Related
- Small twin
- Carl Erskine, Dodgers legend and human rights icon, dies: 'The best guy I've ever known'
- Meghan Markle’s First Product From Lifestyle Brand American Riviera Orchard Revealed
- US Olympic committee strikes sponsorship deal to help athletes get degrees after they retire
- This was the average Social Security benefit in 2004, and here's what it is now
- Blake Griffin retires after high-flying NBA career that included Rookie of the Year, All-Star honors
- A top Federal Reserve official opens door to keeping rates high for longer
- Jelly Roll sued by Pennsylvania wedding band Jellyroll over trademark
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- 13-year-old girl killed, 12-year-old boy in custody after shooting at Iowa home
Ranking
- Sam Taylor
- Genesis guitarist Steve Hackett rushed to hospital moments before his concert
- Israel locates body of teen whose disappearance sparked deadly settler attack in the West Bank
- The 3,100-mile Olympic torch relay is underway. Here's what to know about the symbolic tradition.
- B.A. Parker is learning the banjo
- Suspect arrested after allegedly killing a man at a northern New Mexico rest stop, stealing cars
- NCAA sanctions Michigan with probation and recruiting penalties for football violations
- A big pet peeve: Soaring costs of vet care bite into owners' budgets
Recommendation
Brianna LaPaglia Reveals The Meaning Behind Her "Chickenfry" Nickname
Kristin Cavallari Sets the Record Straight on Baby Plans With Boyfriend Mark Estes
How NHL tiebreaker procedures would determine who gets into the playoffs
International Debt Is Strangling Developing Nations Vulnerable to Climate Change, a New Report Shows
Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
Caitlin Clark fever is spreading. Indiana is all-in on the excitement.
Draft report says Missouri’s House speaker stymied ethics investigation into his spending
Coal miners getting new protections from silica dust linked to black lung disease