‘Eat our dust Kroger:’ FTC, grocery giants debate who real competitors are

Kroger attorneys demand FTC break up Albertsons-Safeway merger or postpone it

Settlement negotiations between the Federal Trade Commission and the proposed Albertsons-Safeway merger have reached an impasse, according to attorneys representing Kroger and Albertsons.

FTC sues to block Albertsons-Safeway merger

The FTC filed suit against the merger on January 19, arguing that the deal would harm consumers by eliminating competition in local grocery markets.

Albertsons, Safeway and Kroger respond

Albertsons and Safeway say they’re ‘disappointed’ by the FTC’s decision, which they called ‘unjustified.’ Kroger said that it expects the combined grocery giant would ‘drive innovation, lower prices and improve the customer experience.’

Attorneys for Kroger submitted a letter to the FTC earlier this month, stating that Albertsons’ latest settlement offer was inadequate. It demanded that the FTC either break up the merger or postpone it for more than five years.

The FTC typically seeks to block mergers that it believes will harm competition and push higher prices for consumers.

The new lawsuit marks the first time the FTC has filed suit to block a merger under FTC Chair Leena Khan, who has taken a tough stance on big-business mergers.