Kroger and Albertsons concluded a lawsuit last month brought on by the Federal Trade Commission (FTC) and nine attorneys general who are attempting to block the grocery retailers proposed $24.6 billion merger. Both sides submitted post-hearing briefs and await a decision by the judge.
Kroger’s and Albertson’s briefing said that blocking the merger would “maintain the downward slide of the traditional grocery store, reducing customer choice and reducing price competition.”
The FTC argued that the merger would violate antitrust law and create a monopoly in the grocery industry. That argument is shared by the states of Colorado and Washington, whose separate lawsuits against the retailers are ongoing.
The FTC also argued that Albertsons is a head-to-head competitor with Kroger, an argument Kroger refuted.
It is Kroger’s and Albertson’s stance that bigger, non-traditional grocers like Walmart, Costco, and Amazon, among others, will continue to dominate the grocery market without the merger, and “Albertsons’ customers will continue to pay more than Kroger customers, and Albertsons may have to consider alternatives, such as layoffs and store closures.”
They also argue that the divestiture of 579 stores to C&S Wholesale Grocers would ensure continued competition in the market.
