Kroger-Albertsons proposal faces another hurdle. Washington AG sues to block merger
Washington State Attorney General Bob Ferguson on Monday sued the Kroger Co. and Boise-based Albertons Companies Inc. to block the proposal to merge the two companies.
A news release from Ferguson’s office said the merger of the “two largest supermarket companies in Washington state will severely limit shopping options for consumers and eliminate vital competition that keeps grocery prices low.” Ferguson filed the lawsuit in King County Superior Court.
According to the news release, many markets would be cornered by Kroger with near-monopolies despite both grocery chains’ mitigation proposal to sell off more than 100 stores in Washington.
Albertsons owns 39 stores in Idaho, and Fred Meyer, which is owned by Kroger, has 11 in the state, according to previous Idaho Statesman reporting. In Ada and Canyon counties alone, Albertsons has 24 stores and Fred Meyer has seven stores.
While the lawsuit asks for an injunction to block the merger nationwide permanently, the attorney general is also asserting that the merger violates antitrust laws in Washington.
Ferguson said in the release that the merger affects both workers and shoppers.
“Free enterprise is built on companies competing, and that competition benefits consumers. Shoppers will have fewer choices and less competition, and, without a competitive marketplace, they will pay higher prices at the grocery store,” said Ferguson. “That’s not right, and this lawsuit seeks to stop this harmful merger.”
Boise-based Albertsons is Idaho’s largest company and employs 290,000 workers nationwide, more than 5,000 of which are in Idaho, according to previous Statesman reporting. Nationwide, Kroger is the fourth-largest grocer, and Albertsons the fifth-largest.
Washington, the two grocers are the largest chains with ownership of more than half of the grocery stores in the state. Kroger alone employs more than 21,000 individuals in Washington.
Between both companies there are more than 700,000 individuals employed nationwide in 5,000 stores in nearly all 50 states.
This story is developing. Check back for more details.
