The FTC has argued that Kroger-Albertsons merger would increase food prices|Ambrosia LaFluer|CC BY 2.0
Supermarket giants Kroger and Albertsons have agreed to pause their $20 billion merger as they await federal regulators’ approval for the deal.
The decision comes in response to legal actions by Colorado’s Attorney General, who argued that the merger would stifle competition and harm consumers, workers, and suppliers.
Additionally, the Federal Trade Commission (FTC) has filed a separate lawsuit, claiming the merger would increase food prices.
The merger, proposed in October 2022, aims to combine the two largest US supermarket chains by store count. The companies claim it is necessary to compete with Amazon and Walmart.
The trial in Colorado is set to begin on September 30. To appease regulators, both companies have agreed to sell nearly 600 stores to C&S Wholesale Grocers.