Washington state sues to block Kroger-Albertsons merger, says deal would raise prices, limit options

Washington state Attorney General Bob Ferguson filed a lawsuit to block the proposed merger between Kroger and Albertsons because of the negative ramifications he says it would have for residents, such as fewer options and higher prices. 

In the suit, filed on Monday, Ferguson argued that the proposed $24.6 billion merger, announced in October 2022, “will likely substantially lessen supermarket competition or tend to create a monopoly in many Washington communities,” where both companies currently compete.

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This would likely increase prices of food and other grocery products in supermarkets offered to Washington consumers while simultaneously decreasing “the quantity and quality of choices available to Washington consumers,” the suit said. 

In the suit, Ferguson noted that the price hikes in food costs over recent years, stemming from things such as COVID and supply chain issues, underscores “the importance of robust competition amongst supermarkets to keep prices in check.”

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Albertsons is the largest supermarket chain in Washington and operates as Albertsons, Haggen, and Safeway. Kroger is the second-largest supermarket chain in the state and operates as Fred Meyer and QFC, according to the suit. 

In a joint statement to FOX Business, Kroger and Albertsons said they are “disappointed in Attorney General Ferguson’s premature decision to file a lawsuit while the merger is still under regulatory review.” 

Kroger is the second-largest supermarket chain in the state and operates as Fred Meyer and QFC. ((Photo by ELIJAH NOUVELAGE/AFP via Getty Images) / Getty Images)

The companies said they are in ongoing talks with the Federal Trade Commission and the other state attorneys general. 

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Both companies said they would “vigorously defend” this suit in court and argued that blocking the 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.” 

They further argued that the merger would lower prices, create more union jobs and bring more affordable options to communities.