Kroger Co (NYSE:KR) and Albertsons Companies, Inc. (NYSE:ACI) shares closed lower Tuesday after lawyers for the Federal Trade Commission (FTC) gave closing arguments in a hearing to temporarily block the proposed merger between the two companies.
The Details: The three-week-long U.S. District Court hearing ended on Tuesday. The FTC urged Judge Adrienne Nelson to issue a preliminary injunction to block the merger while its complaint goes before an in-house administrative law judge on Oct.1.
The proposed $24.6 billion deal would be the largest supermarket merger in U.S. history, if it goes through. Kroger and Albertsons argue the merger would allow them to lower prices for consumers, boost union jobs and compete with retail giants like Walmart Inc. (NYSE:WMT) and Amazon.com, Inc. (NASDAQ:AMZN).
According to a Reuters report, the FTC's chief trial counsel Susan Musser argued Tuesday that Kroger and Albertsons primarily compete with each other, rather than Amazon or Costco Wholesale Corporation (NASDAQ:COST), as well, and the merger would eliminate competition, leading to higher food prices for customers.
"It's this local competition, in these local communities, that this merger will eliminate," Musser said.
KR, ACI Price Action: According to Benzinga Pro, Kroger shares ended Tuesday's session 2.13% lower at $55.04 and Albertsons shares closed 1.75% lower at $18.54.
Read Also:
- What's Going On With Tupperware Brands Stock?
Photo: Shutterstock