Report: FTC, states will sue to stop Kroger merger with Albertsons

Antitrust regulator the Federal Trade Commission, along with a number of state attorneys general, will file a lawsuit as early next week seeking to block Kroger’s $25 billion takeover of Albertsons, according to a report by Bloomberg News, which cited anonymous sources.

After more than 15 months of talks with the Cincinnati-based supermarket giant and its Boise, Idaho-based rival, the only deal federal regulators have struck with the retailers was to keep talking until Feb. 28, the news outlet reported. The lawsuit is expected to be filed before then, the report said, citing “people familiar with the plans.”

The report did not specify where the lawsuit would be filed nor which or how many attorneys general might join the case.

Kroger and Albertsons were attempting to set up a meeting with the FTC’s commissioners in a last-ditch attempt to prevent a lawsuit, the report said. The agency’s commissioners will make the final call on whether to sue or not.

Officials with Kroger said their talks with regulators were ongoing but didn’t elaborate. In January, Kroger revised its original timeline for completing the deal from “early 2024” by Aug. 17.

“Kroger remains in ongoing discussions with the FTC and state regulators,” Kroger spokeswoman Erin Rolfes told the Enquirer on Tuesday.

The FTC declined to comment on the report or acknowledge that it is the regulator reviewing the merger. Government disclosures by Kroger and court filings have revealed the FTC is the regulator evaluating the deal for antitrust issues.

One of the largest-ever proposed retail mergers, the Kroger proposal has been divisive from the start. The deal affects a combined network of nearly 5,000 stores in almost every U.S. state and the employment of more than 700,000 workers.

Consumer and union groups have opposed the deal, claiming it will hurt competition and ultimately raise prices and harm workers. The FTC has declined to comment as it decides whether to block it. Last year, Kroger executives vowed to fight for the deal in court if necessary.

A new lawsuit by federal and state regulators would be the latest in a string of litigation to stop the deal. Most recently, Washington and Colorado filed separate lawsuits, on Jan. 15 and Feb. 14, claiming the deal would reduce competition and hurt consumers and workers.

This article originally appeared on Cincinnati Enquirer: Report: FTC will sue to stop Kroger merger with Albertsons