FTC's Kroger-Albertsons Merger Suit Set for Trial in August

Source: Bloomberg

March 11, 2024 at 6:52 PM EDT


The US Federal Trade Commission’s bid to block the $24.6 billion merger of supermarket giants Kroger Co. and Albertsons Cos. is headed for trial at the end of August in Oregon.

US District Judge Adrienne Nelson on Monday ordered the trial to start Aug. 26 in Portland, and it’s expected to last two or three weeks. The merger would be the biggest US grocery deal in history if it goes through.

The FTC, eight states and Washington D.C. sued last month, claiming the combination of the two largest US supermarket chains would lead to lower wages for workers and higher prices for consumers. Kroger and Albertsons say they need the merger to compete with larger, non-unionized rivals Amazon.com Inc., Walmart Inc. and Costco Wholesale Corp.

The companies have pledged to invest $500 million to cut prices and $1 billion to raise worker wages and benefits, in addition to $1.3 billion to improve Albertsons stores. They also agreed to divest at least 413 stores to Piggly Wiggly chain owner C&S Wholesale Grocers Inc., though the FTC has said the remedy is inadequate.

Read more: https://www.bloomberg.com/news/articles/2024-03-11/us-ftc-s-kroger-albertsons-challenge-suit-headed-to-trial-in-august?srnd=homepage-americas