Kroger's $24.6 Billion Albertsons Acquisition Faces Lawsuit Seeking to Block Deal
Colorado's Attorney General sued to block $The Kroger(KR.US$'s $24.6 billion acquisition of Albertsons, alleging that deal would hurt competition and consolidate an already heavily concentrated market.
The consolidation of Kroger and $Albertsons Companies(ACI.US$ stores would create significant market power to raise prices and reduce quality and services, according to a press release issued by Colorado Attorney General Phil Weiser's office.
The consolidation of Kroger and $Albertsons Companies(ACI.US$ stores would create significant market power to raise prices and reduce quality and services, according to a press release issued by Colorado Attorney General Phil Weiser's office.
Weiser argued that Kroger's proposal to sell off 413 stores and other assets nationwide to C&S Wholesale Grocers won't be enough to counter the anticompetitive effects of the merger.
"Our conclusion in this case—and our skepticism about the proposed divestiture—is strongly supported by what happened in the Albertsons/Safeway merger, where stores closed, jobs were lost, consumers suffered, and the divestiture failed miserably to preserve competition," Weiser said in the press release. “We wont risk another such failed divestiture and we will fight hard to preserve competition for consumers, workers, and suppliers, all of whom have raised serious concerns about the remedy proposed in this case.”
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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