Kroger, Albertsons, Back in Court to Try to Push Merger

Beginning August 26th, until September 13th, Kroger and Albertson's attorneys are in court in Oregon, seeking to have their proposed merger approved. A three-week hearing has begun in Federal court in Portland.

   The proposal to merge was first made in 2022.

If approved it would become the largest grocery merger in US history. Kroger, who owns Fred Meyer, the Kroger Brand, Smiths' Ralph's and others, wants to merge to create a chain that can compete with the likes of Walmart, Target, and Costco.

However, the Federal Trade Commission opposed the merger, claiming it would result in worse conditions for workers, eliminate competition, etc. Kroger and Albertsons' countered by saying it would result in lower prices, better variety and selection, and other advantages for consumers because they would better be able to compete.

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 A number of states joined the FTC lawsuit, and WA state filed its own suit, because between Krogers and Albertsons' there are 300 affected stores.  Fred Meyer stores, a staple of the Northwest and owned by Kroger, would not be affected in any way by the merger. Fred Meyer began in Portland, OR in 1922.

Kroger will attempt to defend the merger over the next three weeks during the hearing. If the judge agrees with them and clears the way, it's possible the FTC might try to appeal but not likely. If the judge rules against Kroger, then they would most likely appeal to a higher circuit court.

Kroger and Albertsons agreed to sell 579 stores to other retailers, so no outlets would be closed due to the merger. It is likely we will have a more clear picture of what is going to happen after September 13th.