New York
CNN
—
Washington state is suing to dam the proposed $25 billion merger between grocery store chains Kroger and Albertsons, warning that if authorized it may increase costs and hurt shoppers.
In a go well with filed Monday by the state’s Legal professional Common Bob Ferguson, his causes for opposing the merger are as a result of it might “severely restrict” grocery retailer choices for Washington residents and “remove important competitors” among the many manufacturers.
“This merger is dangerous for Washington consumers and employees,” Ferguson stated. “Customers could have fewer decisions and fewer competitors, and, and not using a aggressive market, they may pay larger costs on the grocery retailer.”
Ferguson additionally stated the proposal by Kroger and Albertsons to divest hundreds of stores to get federal approval, which embrace greater than 100 in Washington, “doesn’t change the truth that Kroger would nonetheless get pleasure from a near-monopoly in lots of markets within the state.”
In response, a spokesperson for each grocers stated they have been “disillusioned in Legal professional Common Ferguson’s untimely determination to file a lawsuit whereas the merger continues to be beneath regulatory evaluation.”
“The merging events will vigorously defend this in court docket as a result of we care deeply about our clients and the communities we serve, and this merger will end in one of the best outcomes for Washington shoppers,” Kroger and Albertsons stated.
Kroger introduced it was shopping for Albertsons in 2022 with the transaction anticipating to shut later this yr, relying on regulatory approval. Nevertheless it has met with opposition on a number of fronts.
If merged, the 2 firms would have a mixed 710,000 employees — most of them unionized in an business with low union charges — almost 5,000 shops and greater than $200 billion in gross sales. The businesses say they may attain 85 million households.