FTC suing over Kroger and Albertsons merger

(Listening Area) The Federal Trade Commission says Kroger Company plans to buy Albertsons Company Incorporated for a 24.6 billion dollar price tag, a move the FTC is suing to block.

The FTC says this purchase would eliminate an otherwise fierce competition between the two brands, and that doing so would lead to higher prices for groceries and other essential household items for Americans, as well as potentially causing lowered wages and benefits of existing workers.

In a recent press release, Kroger Company had this to say regarding the suit:
“Contrary to the FTC’s statements, blocking Kroger’s merger with Albertsons Companies will actually harm the very people the FTC purports to serve: America’s consumers and workers.

Kroger’s business model is to take costs out of the business and invest in lowering prices for customers. Kroger has reduced prices every year since 2003, resulting in $5 billion invested to lower prices and a 5% reduction in gross margin over this period. This business model is immediately applied to merger companies. Kroger has a proven track record of lowering prices so more customers benefit from fresh, affordable food, and our proposed merger with Albertsons will mean even lower prices and more choices for America’s consumers.

The FTC’s decision makes it more likely that America’s consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts. In fact, this decision only strengthens larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry.”

If the sale goes through, it would be the largest supermarket merger in American history.

Copyright © New Media Broadcasters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.