A Washington state antitrust lawsuit challenging the proposed merger between Kroger and Albertsons is set to go to trial on Monday, Yahoo News reports.
The lawsuit, filed by Attorney General Bob Ferguson, contends that the merger would reduce competition, limit consumer choices, and potentially lead to higher prices.
Attorney General Ferguson argues that the merger would violate Washington state antitrust laws by eliminating Kroger’s primary competitor in the state. Ferguson has also expressed concerns about the potential impact on consumers and workers.
“Free enterprise is built on companies competing, and that competition benefits consumers. My legal team and I will continue working to protect Washington consumers and workers from increased prices and fewer choices,” he stated.
The lawsuit, filed in January, challenges the merger between the two largest supermarket chains in Washington. Kroger and Albertsons, which together operate over 300 supermarkets in the state, are also significant players on the national stage, ranking as the second and fourth largest grocery retailers in the US The merger would consolidate their operations and could have a major impact on the grocery market in Washington, where over half of all supermarkets are owned by either Kroger or Albertsons.
In response to the lawsuit, Kroger and Albertsons have proposed selling hundreds of stores to C & S Wholesale, a company with 23 supermarkets. They argue that C & S is a well-capitalized company with significant industry experience and is capable of effectively operating the divested stores. This plan is intended to address antitrust concerns by creating a new, substantial competitor in the market.
Critics, however, express doubts about the viability of C & S Wholesale, noting past issues with similar divestitures. For instance, when Albertsons merged with Safeway in 2015, it sold stores to Haggen, which later struggled and went bankrupt. Some analysts fear that a similar outcome with C & S could allow Kroger to reacquire the divested stores.
In addition to the trial, a rally organized by the United Food and Commercial Workers International Union (U.F.C.W.) will take place outside Seattle City Hall during the court’s noon recess. The rally will feature speeches from union leaders and local workers who oppose the merger.
