• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Biden administration sues to block Kroger-Albertsons supermarket merger
Editor's Pick

Biden administration sues to block Kroger-Albertsons supermarket merger

by February 27, 2024
by February 27, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The Biden administration is suing to block a proposed merger between Kroger and Albertsons supermarket chains, saying the deal would lead to higher food prices for consumers.

The Federal Trade Commission announced the suit in a release Monday on its website.

‘The FTC charges that 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,’ it said. ‘The loss of competition will also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries.’

Americans have seen food-at-home prices climb more than 20% since the beginning of the pandemic, though more recently those cost pressures have eased. The USDA reported that U.S. consumers spent an average of 11.3% of their disposable personal income on food in 2022 — reaching levels similar to the 1980s, though much of this increase was attributable to large gains in food consumed away from home.

Kroger, the second-largest grocer in the nation behind Walmart; and Albertson’s, the fourth-largest behind Costco, first announced the proposed $25 billion deal in December 2022. It was premised on the chains operating in different parts of the country. If successful, the tie-up would lead to a company with 710,000 workers operating nearly 5,000 stores and approximately 4,000 pharmacies.

But the FTC said in its suit the the merger could also make wages for workers less competitive by eliminating competition.

“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years. Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, Director of the FTC’s Bureau of Competition, in the release. “Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”

In a statement, Kroger criticized the Biden administration’s suit.

‘Contrary to the FTC’s statements, blocking Kroger’s merger with Albertsons Companies will actually harm the very people the FTC purports to serve: America’s consumers and workers,’ the company said.

An Albertsons spokesperson issued a similar statement, saying the proposed merger would ‘expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers shopping experience.’

‘If the Federal Trade Commission is successful in blocking this merger, it would be hurting customers and helping strengthen larger, multi-channel retailers such as Amazon, Walmart and Costco — the very companies the FTC claims to be reining in — by allowing them to continue increasing their growing dominance of the grocery industry.’

This post appeared first on NBC NEWS
You Might Also Like
  • Chrysler recalling 338,000 Jeep Grand Cherokees over potentially faulty steering part
  • Florida’s insurance industry faces upheaval amid Idalia cleanup
  • Chase customers sue over fees for depositing checks that bounce
  • Goodbye to ‘bags fly free’ on Southwest Airlines, the last freebie in America
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Israeli airstrike kills 2 people deep inside Lebanon, Hezbollah responds with 60 rockets
next post
Biden administration sues to block Kroger-Albertsons supermarket merger

You may also like

Why an indicator that has foretold almost every recession doesn’t...

July 25, 2024

People are still being awful on flights, and no one...

June 18, 2023

Spotify is increasing U.S. prices for many of its subscription...

June 4, 2024

AMC bets on premium screens as Hollywood slate boasts big...

April 1, 2025

Inflation cooled to 5% in March, but consumer pain is...

April 13, 2023

Amazon sued by D.C. AG for allegedly excluding neighborhoods from...

December 5, 2024

Hundreds of U2 fans didn’t know the seats they were...

May 18, 2023

Skechers to be acquired by 3G Capital in take-private deal,...

May 6, 2025

Boeing machinists on picket lines prepare for lengthy strike: ‘I...

September 24, 2024

Oscar Mayer is launching a plant-based hot dog

March 8, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Nvidia CEO Huang sells $15 million...

    June 25, 2025

    Rush orders, cut costs, crossed fingers:...

    December 2, 2024

    Delta makes more tweaks to frequent...

    October 21, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here