(The Center Square) – Ohio Attorney General Dave Yost is pushing the federal government to allow a planned merger between two of the nation’s largest grocery store chains.
Kroger, based in Cincinnati, announced plans to buy Boise, Idaho-based Albertsons in October 2022 for $24.6 billion. If allowed to go through, the merger would create a company with nearly 5,000 stories and 700,000 employees.
Last month, the two announced plans to sell nearly 600 stores if authorities approve the merger.
The Federal Trade Commission opposed the merger, saying it would lead to higher consumer prices because of less competition. It filed an antitrust lawsuit to block the merger.
In a brief filed in the U.S. District Court in Oregon, Yost argued there is no reason to delay the deal.
“The FTC’s tunnel vision in this case risks chilling the very competition that it seeks to protect,” Yost said. “A full view of the competitive landscape shows no reason to delay this deal further.”
Attorneys general in Alabama, Georgia and Iowa joined Yost’s brief, which argues that the FTC incorrectly assumes shoppers would have no other option if a hypothetical supermarket raised its prices. The brief also said the FTC rejected supermarkets as a market definition in a 1983 case.
According to foodindustry.com, Kroger is the nation’s second-largest grocery store chain with more than 2,700 stores and more than $148 billion in revenue, ranking only behind Walmart. It’s the largest traditional supermarket chain in the country.
The same website ranks Albertsons fourth with 2023 revenues at more than $77 billion from more than 2,300 stores.
The attorneys general say the merger would actually create stronger competition, and Kroger would sell stores in areas where the companies each have a store.
They also say the FTC did not consider nontraditional grocery stores like Costco, Aldi, Whole Foods and online stores.