PHOENIX — The Federal Trade Commission, with the participation of Arizona Attorney General Kris Mayes, filed a lawsuit on Feb. 26 to block Kroger Co.’s planned $24.6 billion acquisition of Albertsons Cos. Inc.
The transaction involves Cincinnati-based Kroger (NYSE: KR), the nation’s largest operator of traditional supermarkets — which also operates Fry's Food Stores and Smith's stores in Arizona — and Boise, Idaho-based Albertsons, the U.S.’s second-largest such supermarket operator — which operates Safeway stores in Arizona. The deal has faced antitrust scrutiny from regulators and opposition from Congress members, attorneys general, unions and others.
“This supermarket mega-merger comes as American consumers have seen the cost of groceries rise steadily over the past few years,” Henry Liu, director of the FTC’s Bureau of Competition, said in a news release. “Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today. Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing and their working conditions deteriorating.”
