The application by the Federal Trade Commission for a preliminary injunction to block the proposed merger between the Kroger Company and Albertsons Corporation concluded on September 17^th. U.S. District Judge Adrienne Nelson indicated that she would render her verdict in due course following a review of evidence and the written arguments to be submitted by the FTC and Kroger. 

The second case in which the state of Washington is attempting to block the merger commenced this past week to be followed by a similar action in Colorado both initiated by the respective state Attorneys General.

The Federal Trade Commission has scheduled a hearing on the proposed merger to take place in Washington, DC. before an administrative law judge.  Kroger has filed suit against the FTC alleging that the internal hearing would be unconstitutional.

Observers have suggested that in the event of an adverse verdict in Oregon, the proposed merger would be terminated.  Kroger has committed considerable resources to supporting the transaction and faces a “walk away” penalty if the merger is not concluded.

The evidence presented at the Washington State hearing brought by A/G Bob Ferguson to block the deal includes:-

• The reality that the two companies combined represent half of grocery sales in the state and are effectively competitors. Allowing a merger would decrease competition to the detriment of consumers
• Divestment of 124 stores in the transaction to C & S wholesalers is regarded as a non-viable strategy to maintain competition. This argument is based on the 2015 Haggen debacle in which stores divested in the Albertsons-Safeway merger reverted to Albertsons
• Both Albertsons and Kroger are able to compete profitably against Walmart, Amazon and the dollar stores as individual chains without a merger

From the narrow perspective of egg producers and other suppliers especially produce and perishables, the merger would expand the existing buying power of both chains to create a formidable adversary in pricing.  

Subscribers to EGG-NEWS are referred to the special edition mailed on September 23^rd  accessed using the link:

Kroger / Albertsons Merger

This edition reproduces selected reprints of articles posted since the 2022 announcement of the proposed merger. Articles detail the opposition by unions, and Attorneys General of impacted states. Arguments advanced by the FTC concerning competition and rejection of the plan to divest stores and distribution centers to C & S Wholesalers were topics reported among 47 postings.