Colorado Attorney General files lawsuit to block merger between Kroger and Albertsons
A year-long investigation has led Colorado Attorney General Phil Weiser to file a lawsuit to block the merger between Kroger and Albertsons, the parent companies of King Soopers, City Market stores and Safeway stores. The two supermarket chains proposed the merger to eliminate head-to-head competition amid the already saturated market.
Now Coloradans are concerned about the consolidation impacts on consumers, workers and suppliers. Weiser's office announced Wednesday the lawsuit will be filed to block the merger between the two companies.
This comes after a year-long investigation into the proposed $24.6 billion merger between the two largest supermarket chains in the state.
According to the lawsuit, the merger would be bad for everyone involved because it would eliminate competition. The lawsuit would also challenge an illegal "no-poach" agreement between the two companies that developed during the 2020 King Soopers strike. Weiser is looking to seek $2 million in civil penalties due to that agreement. Albertsons had said the company would not hire any King Soopers employees.
"The worst thing that could happen for consumers in Colorado is for this merger to happen. The fact that these companies may choose to fight it in court is up to them. They get that opportunity under the law. We will make our case. We are confident in the merits of our case and believe it will prevent this merger from happening," said Weiser.
UFCW Local 7 released a statement to CBS News Colorado that reads, in part: The 23,000 members of UFCW Local 7, many of whom work in grocery stores from all across the state of Colorado, applaud Colorado Attorney General Phil Weiser's action today to file a lawsuit and challenge the proposed mega-merger of Kroger and Albertsons. Kroger is the parent company of Colorado and Wyoming grocers King Soopers, City Market, and Smith's Foods. Albertsons is the parent company of Colorado and Wyoming grocers Safeway and Albertsons. UFCW Local 7 also applauds Weiser's actions over the past year as he has gone all around the state to listen to grocery store workers and others from local communities as they expressed concerns about this proposal – from Denver to Greeley, Pueblo to Cortez, Golden to Gunnison and over a dozen other cities and towns.
Kroger and Albertsons released a statement to CBS News Colorado that reads, in part: We are disappointed in Attorney General Weiser's premature decision to file a lawsuit while the merger is still under regulatory review, and we remain in active dialogue with the FTC and the other state Attorneys General. The merging parties will vigorously defend this in court because we care deeply about our customers and the communities we serve, and this merger will result in the best outcomes for Colorado consumers. Blocking this merger would only serve to strengthen larger, non-unionized retailers like Walmart, Costco and Amazon, by allowing them to maintain and increase their overwhelming and growing dominance of the grocery industry. In contrast, Kroger and Albertsons Companies merging will bring lower prices to more customers, strengthen and create good-paying union jobs, and bring more fresh, affordable food to more communities.
