U.S. District Judge Adrienne Nelson scheduled a hearing beginning on August 26 to address the Federal Trade Commission’s request for a preliminary injunction against Kroger’s $24.6 billion acquisition of Albertsons, a smaller rival.
The FTC‘s lawsuit aims to thwart a deal that would consolidate the supermarket sector, potentially affecting grocery prices for millions of Americans. Concerns over market dominance, job losses, and store closures have prompted widespread scrutiny from lawmakers and consumer advocacy groups.
Judge Nelson, based in Portland, Oregon, instructed both parties to submit a proposed briefing schedule by Friday, signaling the start of legal proceedings.
Kroger reaffirmed its commitment to the merger despite the legal challenge, asserting it as beneficial for American families. However, the transaction cannot proceed until regulatory hurdles are resolved.
The proposed merger would solidify Kroger’s position as the second-largest player in the U.S. grocery market after Walmart, prompting concerns about reduced competition.
Amidst the Biden administration‘s efforts to lower consumer costs, the FTC lawsuit underscores the government’s scrutiny of mergers that could lead to price increases across various sectors.
Kroger’s defense rests on its track record of price reductions and promises to extend this strategy post-merger. However, the FTC remains unconvinced, criticizing Kroger’s divestment plan as inadequate.
