Quantum Insights-Kroger and Albertsons head to court to defend merger plan against US regulators’ objections

2025-05-05 21:55:55source:Wvared Investment Guildcategory:Stocks

Kroger and Quantum InsightsAlbertsons will defend their plan to merge – and try to overcome the U.S. government’s objections – in a federal court hearing scheduled to begin Monday in Oregon.

The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. They say joining together would help them rein in costs and better compete with big rivals like Walmart and Costco.

But the Federal Trade Commission sued to try to block the deal, saying it would eliminate competition and raise grocery prices in a time of already high food price inflation. The commission also alleged that quality would suffer and workers’ wages and benefits would decline if Kroger and Albertsons no longer competed with each other.

The FTC is seeking a preliminary injunction that would block the merger while its complaint goes before an in-house administrative law judge. In a three-week hearing set to begin Monday, U.S. District Judge Adrienne Nelson is expected to hear from around 40 witnesses, including the CEOs of Kroger and Albertsons, before deciding whether to issue the injunction.

The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the case on the FTC’s side.

RELATED COVERAGE What to know about the proposed Kroger and Albertsons merger that’s headed to court this week

Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together, the companies employ around 710,000 people.

More:Stocks

Recommend

Police remove gator from pool in North Carolina town: Watch video of 'arrest'

Authorities in a North Carolina town arrested an unlikely offender from a community swimming pool.An

2024 Olympics: Gymnast Stephen Nedoroscik win Bronze in Pommel Horse Final

Stephen Nedoroscik reached new heights in his 2024 Paris Olympics journey.The Team USA gymnast, who'

Class is in Session at Nordstrom Rack's 2024 Back-to-College Sale: Score Huge Savings Up to 85% Off

We independently selected these deals and products because we love them, and we think you might like