25 consumers from states like California, Texas, and Florida filed the lawsuit on their behalf, claiming that the merger “will be used to increase grocery prices, decrease the quality of food, eliminate jobs, close stores, and offer less choice for consumers.”
consumers file a lawsuit to stop Kroger’s $25 billion acquisition of Albertsons
Attempts to halt Kroger Co.’s planned $25 billion acquisition of rival Albertsons Companies Inc. have been made in a private lawsuit filed in California on Thursday. State attorneys general, consumer advocacy organizations, and some US lawmakers have questioned the deal as being detrimental to grocery market competition.
25 consumers from states like California, Texas, and Florida filed the lawsuit on their behalf, claiming that the merger “will be used to increase grocery prices, decrease the quality of food, eliminate jobs, close stores, and offer less choice for consumers.”
According to revenue, Albertsons is the second-largest supermarket chain in the United States, behind Kroger. If the deal, which was announced in October, is completed, nearly 5,000 grocery stores will be consolidated under a single corporate structure.
In addition to stating that they are collaborating with the US Federal Trade Commission on its regulatory review, the companies have defended the deal as offering a “more efficient distribution chain.” The lawsuit seems to be the first private lawsuit opposing the agreement.
On Friday, an Albertsons representative declined to comment, and a Kroger spokesperson did not immediately return a message requesting comment.
Balducci’s, Shaw’s, Kings, and Safeway are among the establishments under Albertsons’ control. King Soopers, Pay Less, and Harris Teeter are just a few of the store brands that Kroger operates.
