Bob Ferguson, activist Attorney General for the state of Washington, has filed a lawsuit in the State court opposing the proposed merger of Albertson’s and The Kroger Company.  Parallel action by the State of California is under consideration.

The Federal Trade Commission was expected to make a determination on the merger by December 15th, 2023, but has delayed the decision until early February 2024. Kroger and Albertsons consider that they have satisfied antitrust requirements by agreeing to sell 413 Kroger and Albertsons stores to C&S Wholesale Grocers.

If the FTC blocks the merger, extensive litigation is anticipated. This action would principally benefit competitors Walmart and Amazon.  The merger would not be in the interest of egg producers, especially in the Western states since they would be faced with a grocery chain exercising immense buying power.  Unions are predictably opposed to the merger.  Consumer advocates point to higher prices for food, pharmacy deserts and the predictable impacts of concentration.

Six lawmakers have addressed a communication to the FTC opposing the transaction claiming that the divestment of the designated stores would be insufficient to overcome the potential monopoly created in some areas of operation.  Questions have been raised as to the ability of C&S Wholesale Grocers, to successfully operate over 400 stores. The situation is reminiscent of the 2015 bankruptcy of Hagen after acquiring Safeway stores that were divested following the Albertsons acquisition.