FTC’s Lawsuit Against Kroger-Albertsons Merger Set for August Trial

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The US Federal Trade Commission’s attempt to block the $24.6 billion merger between Kroger Co. and Albertsons Cos. is scheduled for trial at the end of August in Oregon. US District Judge Adrienne Nelson has set the trial to commence on August 26 in Portland, anticipated to span two to three weeks. This merger would mark the largest deal in the history of US grocery.

As part of their defense, the companies have committed to investing $500 million to lower prices and $1 billion to enhance worker wages and benefits, in addition to allocating $1.3 billion for the improvement of Albertsons stores. Furthermore, they have agreed to divest at least 413 stores to C&S Wholesale Grocers Inc., the owner of Piggly Wiggly chain, although the FTC has criticized this remedy as insufficient.

Together, Kroger and Albertsons operate nearly 5,000 supermarkets nationwide under various brand names such as Ralphs, Safeway, Harris Teeter, and Jewel-Osco.

In response to the FTC’s opposition, Kroger and Albertsons argue that blocking the merger would negatively impact consumers and workers while further consolidating the power of larger retailers.