Experts Question WA AG’s Lawsuit Against Kroger-Albertson’s Merger

A business and political expert questions WA AG Bob Ferguson's lawsuit against the Kroger-Albertson's merger, calling it curious.

  Many of Ferguson's claims are challenged in op-ed

Chris Cargill of The Mountain States Policy Center has written an op-ed piece for The Center Square about Ferguson's lawsuit.

Ferguson is suing to block the merger, claiming it will result in higher prices for consumers, resulting in fewer choices and a less competitive marketplace.

Cargill points out that Walmart, Amazon, and Costco get the biggest percentages in the grocery-retail marketplace, with a combined 42 percent of the market share.

The Kroger-Albertson's merger would put them at 9 percent of the total market. But, he says it would signal significant competition to the 'big 3.'

Ferguson also claims prices would rise because of less competition, but Cargill says the facts are they would likely drop and be competitive with the other merchants because they would be competing against each other. He references this by saying:

"An economist with the Strategic Resource Group recently told Yahoo Finance "Kroger’s acquisition of Albertsons is the last, best, and final chance to level the playing field.""

As for claims that stores will close, Kroger and Albertson's plan to sell a combined 413 stores to avoid monopolies in certain communities, but Cargill says there are few cities where they both have a presence. And, recent information indicates the stores being sold off have buyers, Cargill says no stores will be closing due to those sales.

To read this eye-opening op-ed for yourself, click here.