The Federal Trade Commission, along with nine state attorneys general, announced on Monday their intention to block the $24.6-billion acquisition of Albertsons Companies, Inc. by Kroger Company due to concerns of anticompetitive behavior in the supermarket sector. This proposed merger would be the largest in this industry.
According to a complaint filed in federal court, the FTC argues that this deal would result in higher prices for essential household items and limit consumer options for grocery shopping. The loss of competition could also lead to lower quality products and services.
Henry Liu, Director of FTC’s Bureau of Competition stated that this merger comes at a time when consumers are already facing rising costs for groceries and it will only worsen their financial strain. He also expressed concern about how essential grocery store workers may be negatively impacted by potential wage cuts and reduced benefits under this deal.
Kroger responded with a statement claiming that blocking the merger would actually harm consumers and workers rather than protect them as intended by the FTC.
This development is significant news within the commercial real estate industry as it has implications on future mergers between major companies like Kroger-Albertsons.
