Farm, consumer groups urge U.S. to block Kroger's planned $25 billion buy of Albertsons

Reuters

Published Dec 01, 2022 12:11PM ET

Updated Dec 01, 2022 03:46PM ET

WASHINGTON (Reuters) -Advocacy groups, including the Open Markets Institute and National Farmers Union, on Thursday asked U.S. antitrust enforcers to stop Kroger (NYSE:KR) Co's planned $25 billion purchase of rival grocery giant Albertsons Companies Inc.

In a letter to Federal Trade Commission Chair Lina Khan, the groups argued that the deal would raise prices in some parts of the United States and hurt some grocery store and warehouse workers.

"As organizations representing farmers, workers, consumers, and advocates for fair food systems, we urge the Federal Trade Commission to block Kroger's acquisition of Albertsons," the letter said.

Kroger said in a statement that it did not expect the deal, if it goes forward, to lead to any store closures, which would hurt workers.

"With a broader network and even more customers to serve, we believe the merger will benefit our suppliers, including farmers, as it will allow for a more efficient distribution chain, provide opportunities to grow sales together and reduce waste," the company said.

Kroger Chief Executive Rodney McMullen argued this week in a congressional hearing that even after the deal, his company would remain smaller than Walmart (NYSE:WMT).

The FTC declined comment.

The groups, which include Food and Water Watch, argued that the biggest food companies pay fees to Kroger and Albertsons to ensure shelf space for their products, leaving little room for new or community-based suppliers.

"Combining Kroger and Albertsons will also create a new mega-grocery buyer with exceptional buyer power to squeeze its suppliers, shrinking farmers' and workers' share of the food dollar," the letter added.