Kroger and Albertsons head to court to defend merger plan against US regulators’ objections

Kroger and Albertsons will plan to merge – and try to overcome the U.S. government’s objections – during a hearing in a federal court starting Monday in Oregon.

The two companies proposed what the largest supermarket merger in U.S. history in October 2022. They say that by working together they can control costs and better compete with big rivals like Walmart and Costco.

But the Federal Trade Commission filed a lawsuit to block the deal, saying it would hold up the deal. eliminate competition and increase food prices at a time of already high food price inflationThe commission also alleged that quality would suffer and worker wages and benefits would decline if Kroger and Albertsons stopped competing with each other.

The FTC is seeking a preliminary injunction that would block the merger while the complaint proceeds before an internal administrative law judge. In a three-week hearing beginning Monday, U.S. District Judge Adrienne Nelson is expected to hear from about 40 witnesses, including the CEOs of Kroger and Albertsons, before deciding whether to grant the injunction.

The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the case on behalf of the FTC.

KrogerBased in Cincinnati, Ohio, it operates 2,800 stores in 35 states, including brands such as RalphsSmith’s and Harris Teeter. Albertsonsbased in Boise, Idaho, operates 2,273 stores in 34 states, including brands such as Safeway, Jewel Osco and Shaw’s. Together, the companies employ about 710,000 people.