The FTC Sues To Block Kroger And Albertsons Merger Deal

The FTC alleges the largest supermarket merger in U.S. history would lead to higher prices, store closures and job loss.

The Federal Trade Commission sued to block a $25 billion deal between Kroger and Albertsons Monday.

The merger would combine the fifth and tenth largest retailers in the nation. The companies each also own dozens of chains including Harris Teeter and more.

Kroger and Albertsons, which employ mostly unionized work-forces, said they wanted to merge to “be more competitive against non-union giants such as Walmart and Amazon.”

The companies argued they will be able to “use $500 million in cost savings from the merger to reduce prices for shoppers and tailor promotions and savings.”

The FTC alleges the largest supermarket merger in U.S. history would lead to higher prices, store closures and job loss. The agency added the merger would eliminate competition in the grocery industry, which could drive costs even higher than they already are.

Kroger and Albertsons criticized the lawsuit and plan to appeal the FTC’s decision to block the merger.