U.S. lawmakers send letter to FTC protesting Kroger, Albertsons merger

Six U.S. lawmakers, including Sens. Elizabeth Warren, Mazie Hirono, Bernie Sanders, and Cory Booker, along with representatives Summer Lee and Alexandria Ocasio-Cortez, have raised concerns about the proposed $24.6 billion merger between Kroger and Albertsons. They’ve sent a letter to the Federal Trade Commission (FTC) opposing the deal. The lawmakers argue that the divestiture of 413 Kroger and Albertsons stores to C&S Wholesale Grocers, intended to address antitrust concerns, may not sufficiently mitigate the negative impacts the merger could have on consumers, workers, and the grocery industry as a whole.

One of their primary concerns is that divestiture strategies often fail to maintain competitive conditions, as the companies involved may not have a strong incentive to ensure the success of the businesses they spin off. Kroger has claimed that it has met all antitrust law requirements, including the sale of stores to C&S Wholesale Grocers, and the FTC is now set to decide on the merger by December 15th.

Interestingly, local United Food and Commercial Workers (UFCW) unions have also supported a report suggesting that the Kroger-Albertsons merger could negatively affect the labor market. The report indicates that union workers may have better bargaining power when dealing with two smaller industry players than a large grocery conglomerate. Additionally, the research suggests that consolidation of this kind could adversely affect workers’ earnings, work hours, and job quality………[read more]

Rising Dough

How can regulatory bodies strike a balance between promoting competition in the business world and ensuring the welfare of workers and consumers when evaluating mergers and acquisitions in the market?