New York (CNN) – The Federal Trade Commission on Monday filed a lawsuit to block a $ 25 billion deal between Koger and Albertson, alleging that the largest supermarket merger in US history would increase high prices for consumers.
The merger declared in 2022 sought to combine the fifth and tenth largest retailers in the country. Companies have dozens of series, including Safway, Vaughan, Harris Teatter and Fred Mayor.
But the prices of food in the form of proposed merger have touched the sky. According to the Bureau of Labor Statistics, the US has been spending 26% more on grocery goods since 2020. People in the United States have been spending the highest part of their income on food compared to any point in the last 30 years.
FTC said in a statement that the merger would end competition in the grocery industry, which can drive the cost even more and give rise to the store and give rise to job loss.
Crroger and Albertson, both appointing most of the federal workforce, said they wanted to be more competitive against most non-sangato veterans such as Walmart, Amazon and CostCo. Grosers are also facing rising pressure from the rapidly growing German discount supermarket chain Aldi.
The merger will “intensify our position as a more compelling alternative to large and non-union contestants,” Crroger CEO Rodney McMulan said that when the deal was announced.
Kroger and Albertson did not immediately comment on the trial.
The two companies have 710,000 workers, about 5,000 stores and more than $ 200 billion in sales. Companies argued that shopkeepers and tailor would be able to use $ 500 million in cost savings from the deal to reduce prices for promotion and savings.
But the FTC claim was suspected in his trial.
“This supermarket mega merger because American consumers have seen the cost of growing groceries in the last few years. Henry Liu, director of the FTC’s Bureau of Competition, said that the acquisition of Crroger of Albertson will increase the price of additional grocery for everyday goods.
In order to overcome the antitrust concerns that the merger will prevent competition in local markets, where their store overlaps, Croger and Albertson agreed to sell around 400 stores to C&S wholesale groups, owner of Pigli Wigli and other brands, and C&S also agreed to purchase more than 200 stores, what is the proposal to purchase what is the proposal to buy. Pusback.
But unions, small grocers and a coalition of Democrats and Republican on Capital Hill strongly opposed the merger from the beginning. He said that tie-up would damage competition and lead high prices and job losses.
FTC Chair Khan Scriptical of Divestites
In 2014, Albertson’s $ 9 billion tie-up with Safway looked at regulators including FTC chair Leena Khan.
To win approval for that deal with antitrust regulators, Albertson and Safway agreed to sell their 168 stores to buyers approved by FTC.
With the blessings of FTC, Haggen, bought 146 from East Albertson and Safeway stores with just 18 places with a small supermarket chain in Northwest.
But Haggen struggled to manage the shops. After less than a year, Hagan filed for bankruptcy and closed some places.
The mine has suspected partitions as an effective tool to promote competition. He criticized the handling of Albertson’s deal with the safway of FTC, indicating it as a prime example of the boundaries of the separation.
In a review article of a law of 2017, he wrote before Hel Hel to FTC, Khan said that the agency had approval to partition “[hard] “And a” luxurious “failure for fathom.
“Even a casual supervisor had predicted that Hagan would have a lot of difficulty in expanding his storefront,” Khan said. “Skepticists have been proved correct.”
Under Khan, FTC has also launched a landmark antitrest suit against Amazon and other technical giants.
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