Kroger and Albertsons defended their plan to merge and attempted to overcome the U.S. government’s objections in a federal court hearing that began Monday, according to the Associated Press. The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. They say joining together would help them rein in costs and better compete with large rivals like Walmart and Costco.
The Federal Trade Commission sued to try to block the deal, however, saying it would eliminate competition and raise grocery prices in a time of already high food price inflation. The commission also alleges that quality would suffer and workers’ wages and benefits would decline if Kroger and Albertsons no longer competed with one another.
Kroger said the merger would help secure union jobs. The company said it has added 100,000 union jobs since 2012.
In the three-week hearing that opened Monday, the FTC is seeking a preliminary injunction that would block the deal while its complaint goes before an in-house administrative law judge.
Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states and includes brands like Ralphs, Smith’s, and Harris Teeter. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states and includes brands like Safeway, Jewel Osco, and Shaw’s. Together, the companies employ around 710,000 people.
