Washington Attorney General Bob Ferguson has filed a lawsuit to block the proposed merger between Kroger and Albertsons, the two largest grocery store chains in the state. According to Ferguson, the merger would lead to higher prices and limited choices for consumers by eliminating competition. The lawsuit cites evidence, including emails from company executives expressing concerns about creating a monopoly in the grocery sector.
As part of the proposed deal, the companies agreed to sell over 100 stores in Washington. However, Ferguson argues that the intended buyer, C&S Wholesale Grocers, is primarily a wholesale supplier ill-equipped to operate retail locations successfully. The attorney general believes that this could result in store closures and job losses, further reducing choices for consumers.
Ferguson emphasized the negative impact on shoppers and workers, stating that the merger is unnecessary given the profitability of both companies. The proposed merger involves Kroger, which owns QFC and Fred Meyer, and Albertsons, which owns Safeway and Haggen. The combined companies operate over 300 supermarkets in the state, with a significant presence in the Seattle-Tacoma-Bellevue metropolitan area.
The lawsuit seeks a permanent injunction to block the merger nationwide, alleging that it violates Washington antitrust law. Kroger and Albertsons expressed disappointment in the attorney general’s decision to file the lawsuit prematurely and stated their intention to fight the legal action in court.