Food Fight: FTC Sues To Block Smith’s Albertsons Grocery Merger
Some time ago, Albertsons merged with Vons and the number of grocery store options have dwindled pretty significantly since. No more Glaziers. No more Fresh & Easy. That has left with the valley with Albertsons and Smith’s, owned by corporate parent Kroger. Their plan since 2022 has been to get hitched and become one. Then the states got in the way. Now the FTC is stepping in.
In a press release that dropped Monday morning, the Federal Trade Commission announced they are suing to block the merger from happening, saying that the merger would be “anticompetitive” and leave, in many places, a virtual monopoly for grocery stores.
What Is The FTC Saying About The Planned Smith’s – Albertsons Merger
“The proposed deal will eliminate fierce competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items for millions of Americans,” the FTC claimed in a statement. “The loss of competition will also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries.” The ramifications of a massive merger like this could also mean bad news for workers who would lose negotiation power, with few other employers in the sector.
You have heard people rattle the cages about the merger for a while. Nevada’s own Attorney General also heard comments on the matter and joined the federal lawsuit alongside seven other states and the District Of Columbia.
Kroger and Albertsons have made the argument that the merged company would still not be as large as Walmart, who they consider to be the largest grocery store in the country. Now they will have to make that argument in a federal court in Oregon.
Thankfully more competition is on its way to the valley. Aldi is planning to open locations in the valley, and if the merger goes through, the owner of Piggly Wiggly grocery stores has agreed to buy some locations that will have to be spun off.
Whatever ends up happening, the FTC is already off to a pretty decent start this year blocking mergers. Ask JetBlue and Spirit.