Alaskan concerned for Kroger-Albertsons merger

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Alaskan concerned for Kroger-Albertsons merger

Almost a  year since Kroger-Albertsons mega-merger announcement, the $25 billion deal has yet to materialize.

After being unveiled in October 2022, a subcommittee of the U.S. Judiciary board deemed that the transaction would result in the “devaluation of the company at a time when consumers are facing crushing inflation.”

However, later June reports stated that the fusion was still on track “on both the regulatory approval and merger planning fronts.”

Now, Alaska representative Mary Peltola is urging the Federal Trade Commission (FTC) to halt the transaction, citing the state’s highly concentrated grocery market, Winsight Grocery Business reports.

Related articles: Kroger-Albertsons merger still on track

“Alaska already has an incredibly concentrated grocery store market, and potential divestments of stores resulting from the merger would threaten both competition and basic food security in many communities across the state,” Peltola details in a letter to the FTC.

Peltola adds that, in Alaska’s main cities, Kroger and Albertsons represent the primary competitors for groceries and house goods. She argues that, if the merger goes through, it would lead to store closures that would further reduce competition and create a “near-monopolistic landscape in a state that already has some of the highest costs of living in the U.S.”

In February, Kroger, and Albertsons stated that they are looking to sell between 250 and 300 stores as divestitures to secure regulatory approval.

The companies also agreed on a limit of 650 stores divestitures, at which point they could reassess the acquisition.

While this divestiture looked to alleviate concerns over the merger, the deal remains under antitrust review.

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