Kroger, Albertsons $24.6B deal goes to trial

The antitrust trial to stop the merger between Kroger and Albertsons begins today in Oregon federal court, where the grocers will try to defend their planned deal, saying it will help them compete against big-box retailers like Walmart and Costco.

However, the Federal Trade Commission (FTC) believes Kroger and Albertsons joining hands would significantly reduce competition, raise grocery prices at a time when foodstuffs are already expensive, and harm workers.

Kroger and Albertsons have agreed to sell more than 570 stores to C&S Wholesale Grocers to calm the FTC.

The FTC aims to get a preliminary injunction against the $24.6 billion deal. An injunction would delay the merger while the commission works on an in-house case against it.

Ohio-based Kroger has 2,800 stores in 35 states, while Idaho-based Albertsons operates 2,273 stores in 34 states. Together, they have around 710,000 employees.

To win the case, Kroger must prove that C&S Wholesale Grocers has the intent and the infrastructure to operate the 550+ locations.

The hearing is expected to last until September 13.