The much-discussed merger between grocery giants Kroger and Albertsons was ruled on Tuesday by a federal judge in Oregon, who ruled that the merger would stifle competition and lead to higher prices for consumers, leading to food shortages in Southern California and Southern California. It sided with federal regulators who say it harms store workers, dealing a potentially fatal blow. Beyond.
The Federal Trade Commission, along with California and seven other states, filed a lawsuit in February challenging the proposed $24.6 billion merger.
Kroger officials said the merger would make the new company more competitive with large conglomerates such as Walmart and Amazon, but they cautioned that the merger would lead to wholesale store closures that would lead to higher prices and put people out of work. He claimed that there was no. The company announced that it will spin off 579 stores into C&S Wholesale Grocers to ensure continued operations.
But after a three-week trial, U.S. District Judge Adrian Nelson agreed with the FTC’s opinion and ruled that the merger would eliminate competition between the nation’s two largest grocery chains, lead to higher prices, fewer jobs, and unionization. It said there could be a negative impact on grocery store workers who are members of the group.
Following the judge’s ruling, FTC spokesman Douglas Farrar said in a statement to Reuters that the decision “protects competition in the grocery market and prevents further price increases.” This manifesto victory makes clear that strong, reality-based antitrust enforcement delivers real results for consumers, workers, and small businesses. ”
Kroger/Albertsons did not immediately respond. Kroger is the parent company of Southern California grocery giant Ralphs, along with Food 4 Less and other retailers.
Officials with the United Food and Commercial Workers Union, which represents grocery store workers, issued a statement saying the merger would be “negative for workers who deserve adequate pay for their work and a safe and respectful workplace.” ”.
“The result would be dire for shoppers who deserve competition that leads to better choices and lower prices,” the union said. “It will hurt farmers and suppliers who need to find a balance.” Thanks to their efforts. Rather, the proposed merger would create an unbalanced system that would raise prices, eliminate competition, and lower wage and safety standards. ”
The proposed merger was announced in 2022 and would be a deal that would combine ownership of Ralphs, Albertsons, Vons and other supermarket chains.
When the deal was announced, Kroger officials said the combined company would include approximately 5,000 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers. More than 710,000 people work
For both companies.
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