SEATTLE (AS) — The proposed huge grocery store merger between Kroger and Albertsons would increase costs and restrict choices for buyers, in line with Washington Legal professional Basic Bob Ferguson.
Ferguson introduced Monday that his workplace filed a lawsuit to dam the deal.
Kroger and Albertsons are the 2 largest grocery chains in Washington state, and Ferguson mentioned the merger would eradicate Kroger’s closest competitor and create an unlawful focus of shops owned by the identical firm.
It isn’t simply Kroger and Albertsons.
Nationwide, Kroger owns shops equivalent to Ralphs, Dillons, Smith’s, King Soopers, Fry’s, QFC, Metropolis Market, Owen’s, Jay C, Pay Much less, Baker’s, Gerbes, Harris Teeter, Decide ‘n Save, Metro Market and Mariano’s. .
For its half, Albertsons says it owns greater than 2,200 shops in 34 states and Washington, D.C., together with Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Meals Markets and Balducci’s Meals Lovers Market.
Ferguson cited proof his workforce has uncovered, together with emails from firm executives such because the vp of Albertsons, who wrote: “Mainly, with the merger you might be making a monopoly within the grocery sector, it does not make sense.”
As a part of the deal, the 2 corporations agreed to promote greater than 100 shops in Washington. Nonetheless, Ferguson mentioned the proposed purchaser is primarily a wholesale provider ill-equipped to efficiently function the extra areas. Placing them within the arms of C&S Wholesale Grocers, which doesn’t personal any shops in Washington, may result in retailer closures and job losses, leading to even fewer choices for customers, Ferguson mentioned.
“This merger is unhealthy for Washington buyers and employees,” Ferguson mentioned. “Free enterprise is predicated on competitors amongst companies, and that competitors advantages customers. Patrons can have fewer decisions and fewer competitors, and and not using a aggressive market, they may pay extra.” costs within the grocery store. “That is not proper, and this lawsuit seeks to cease this dangerous merger.”
Mixed in Washington state, the 2 corporations function greater than 300 supermarkets throughout the state, the overwhelming majority within the Seattle-Tacoma-Bellevue metropolitan space.
Kroger and Albertsons monitor one another’s costs and modify them to compete with one another. Ferguson mentioned the merger would eradicate that competitors.
The legal professional normal’s workforce referred to as the merger “unlawful” and the lawsuit seeks a everlasting injunction to dam it nationwide by asking the court docket to seek out that the merger violates Washington antitrust legislation.
KOMO Information has reached out to each corporations for remark.