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Second lawsuit aims to block merger

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DENVER — Colorado attorney general Phil Weiser has filed a lawsuit aiming to block Kroger’s planned $25 billion merger with Albertsons Cos., arguing that the deal “would lead to stores closing, higher prices, fewer jobs, worse customer service and less resilient supply chains.”

Kroger and Albertsons responded in a joint statement that they were “disappointed in Attorney General Weiser’s premature decision to file a lawsuit while the merger is still under regulatory review by the FTC.”

The companies said they would fight the move in court, and also argued that consumers would benefit from the merger if it were to go ahead. In a statement issued on February 14, the same day the Colorado attorney general’s lawsuit was filed, Kroger pointed to a track record of lowering prices for consumers after previous merger deals.

“We believe the way to be America’s best grocer is to provide great value by consistently lowering prices and offering more choices. When we do this, more customers shop with us and buy more groceries, which allows us to reinvest in even lower prices, a better shopping experience and higher wages,” said Rodney McMullen, chairman and chief executive officer of Kroger. “We know this model works because we’ve been doing it successfully for many years, and this is exactly what this merger will bring customers — lower prices and more fresh, affordable choices.”

McMullen said Kroger invested more than $125 million to lower prices at Harris Teeter after its merger in 2014 and more than $100 million to lower prices at Roundy’s after its merger in 2016. Additionally, Kroger invested $2.5 million and $2.4 million in capital per Harris Teeter and Roundy’s store, respectively, to enhance the customer experience in the three years following each merger.

Kroger has also “made clear, consistent commitments to lower prices and improve the customer experience post-merger,” the company said, stating that it will invest $500 million to lower prices following the merger with Albertsons, “starting day one following the transaction close.” Kroger will also invest $1.3 billion to improve Albertsons’ stores following the merger, the company said. The company also argued that it will become more competitive and able to invest even more to support customers and its more than 700,000 associates by combining with Albertsons.

Colorado’s lawsuit is the second by a state attorney general to contest the merger. Washington state attorney general Bob Ferguson filed a lawsuit in January seeking to block the merger, also arguing that the deal, first announced in 2022, would hurt consumers. For their part, Kroger and Albertsons have pushed back the expected closure of the merger until later this year.


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