A private lawsuit filed in California on Thursday seeks to stop Kroger’s planned $25 billion purchase of rival Albertsons, a deal that state attorneys general, consumer groups and some US lawmakers have questioned as harmful to competition in the grocery market.
The lawsuit was filed on behalf of 25 consumers in states including California, Texas and Florida who alleged the merger “will be used to increase prices for groceries, decrease the quality of food, eliminate jobs, close stores and offer less choice for consumers.”
Kroger is the biggest grocer in the US by revenue, and Albertsons is the second-largest supermarket chain. Nearly 5,000 grocery stores would be under one corporate umbrella if the deal, announced in October, goes through.
Read more: Washington Court Declines To Review Albertsons’ $4B Dividend Case
The companies have defended the deal as providing a “more efficient distribution chain” and also have said they are working with the US Federal Trade Commission on its regulatory review. The lawsuit appears to be the first private action challenging the deal.
US antitrust law lets private consumers sue over proposed mergers and acquisitions, apart from any enforcement action brought by a state or federal agency policing competition laws.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI