The proposed $24.6 billion acquisition of rival Albertsons by Kroger, according to the Federal Trade Commission (FTC) and several US states, would eliminate significant competition, “exacerbating the financial strain consumers across the country face today”.
Both businesses pledged to uphold the agreement.
The legal dispute occurs while growing costs continue to be a major political concern.
Over the past four years, food costs in the US have increased by 25%, and US President Joe Biden is under pressure to demonstrate that his administration is addressing the issue.
With names including Harris Teeter and Fred Meyer, Kroger is one of the largest grocery stores in the United States in terms of sales.
In October 2022, it declared its intention to acquire Albertsons Companies, claiming that this would enable it to more effectively rival companies such as Walmart and Amazon.
With the merger, a company with over 5,000 locations throughout 48 states, 700,000 employees, and a projected 85 million household clientele would be formed.
Regulators are being urged to thwart the acquisition by those who oppose it, arguing that Americans have suffered as a result of the supermarket industry’s growing concentration of large companies.
