From CNBC:

The U.S. FTC is suing to block the $24.6 billion merger of Kroger and Albertsons, citing concerns of higher prices for consumers and lower wages for workers. A bipartisan group of nine attorneys general joined the lawsuit, emphasizing the potential negative impact on the industry and economy.

Kroger argues that blocking the deal will harm consumers and workers, leading to higher food prices and fewer grocery stores. However, federal regulators believe the merger would harm shoppers and workers amid rising inflation. The Biden administration is focused on consumer protection and has expressed skepticism towards various mergers.

Kroger CEO defends the merger, claiming it will lead to lower prices, increased profitability, and innovation in the grocery sector. Two unions opposing the deal fear that a larger company could have excessive pricing power, potentially hurting consumers. The merger aims to bolster Kroger and Albertsons against larger competitors like Walmart, Amazon, and Costco.

The combined Kroger and Albertsons would have 5,000 U.S. stores, narrowing the gap with Walmart. Despite promising to sell over 400 stores to ease antitrust concerns, FTC argues this isn’t sufficient for healthy competition. The agency believes the merger could reduce quality and service for consumers, along with limiting job options for workers.



Read more at CNBC: FTC sues to block Kroger Albertsons grocery store merger