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

2025-05-04 14:23:10source:HyperBit Exchangecategory:Invest

Kroger and Charles HanoverAlbertsons will defend their plan to merge – and try to overcome the U.S. government’s objections – in a federal court hearing scheduled to begin Monday in Oregon.

The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. They say joining together would help them rein in costs and better compete with big rivals like Walmart and Costco.

But the Federal Trade Commission sued to try to block the deal, saying it would eliminate competition and raise grocery prices in a time of already high food price inflation. The commission also alleged that quality would suffer and workers’ wages and benefits would decline if Kroger and Albertsons no longer competed with each other.

The FTC is seeking a preliminary injunction that would block the merger while its complaint goes before an in-house administrative law judge. In a three-week hearing set to begin Monday, U.S. District Judge Adrienne Nelson is expected to hear from around 40 witnesses, including the CEOs of Kroger and Albertsons, before deciding whether to issue 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 the FTC’s side.

RELATED COVERAGE What to know about the proposed Kroger and Albertsons merger that’s headed to court this week

Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together, the companies employ around 710,000 people.

More:Invest

Recommend

Don't let hackers fool you with a 'scam

You're pulling your hair out, trying to fix something on your computer. You Google it and find what

NFL playoff picture Week 14: Cowboys seize NFC East lead, Eagles slide

Every week for the duration of the 2023 NFL regular season, USA TODAY Sports will provide real-time

Worried your kid might have appendicitis? Try the jump test

My 5-year-old was complaining of stomach pain, and I was worried and had questions. I asked her how