Feds to file lawsuit to stop mega-merger involving NJ, PA supermarkets

Federal regulators say they will be filing a lawsuit to stop a mega-merger between two giant supermarket chains, one of which has dozens of stores across New Jersey and Pennsylvania.

The Federal Trade Commission says they wish to block the nearly $25 billion merger of Kroger and Albertsons as it would "result in higher prices for shoppers and lower wages for workers," according to a report published by CNBC.

Albertson's owns Acme supermarkets across the Garden and Keystone States.

Henry Liu, director of the FTC’s Bureau of Competition, told the business news network,

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. Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.

Kroger responded by saying,

The FTC’s decision makes it more likely that America’s consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts."

Kroger currently has about 2,700 food stores across the nation while Albertson's has about 2,200.

The Associated Press reports the two companies employ about 700,000 people.

The AP also says if allowed to merge, a combined Kroger and Albertsons would control around 13% of the U.S. grocery market while Walmart controls about 22%.