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Colorado takes it case against Kroger-Albertsons merger to court

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The Colorado attorney general’s office will make its case against the merger of grocery store chains Kroger and Albertsons in court starting Monday as state attorneys will argue that consolidation of the two competitors would harm customers, employees and area farmers.

Colorado’s lawsuit in Denver District Court is one of three challenging the $24.6 billion deal that would combine two of the country’s largest grocers. A trial in Washington state’s lawsuit against the proposal is underway.

And a decision is expected in a trial in Oregon in which the Federal Trade Commission sued to block the merger until it can resolve its administrative proceeding against what it says would be the largest supermarket consolidation in U.S. history. The FTC is fighting the plan on grounds that it would drive up prices for millions of Americans and drive down competition.

The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming joined the FTC’s lawsuit. Kroger is suing to stop the FTC’s administrative proceeding, saying it’s unconstitutional.

In Colorado, where Kroger owns King Soopers and City Market stores and Albertsons Cos. owns Safeway, the attorney general’s office said the grocers account for more than 50% of the market share and combining them would violate state antitrust laws. Attorney General Phil Weiser filed a lawsuit in February to oppose the merger after holding 19 town halls across the state to hear from the public.

“I can actually tell you in all of the 19 town halls and the hundreds of people who I got to hear from directly, not a single person said to me, ‘I think this merger is a good idea,’ ” Weiser said in an interview.

Instead, people were concerned about food prices going even higher if the supermarket chains team up, Weiser said. Employees fear losing their jobs and seeing stores close, as some did after Albertsons acquired Safeway in 2015.

Weiser said Colorado farmers who sell their produce to King Soopers and Albertsons worry that they’ll lose out if the companies consolidate. The two currently compete against each other for such popular fare as peaches grown in Palisade.

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The United Food and Commercial Workers Local 7, which represents grocery workers in Colorado and Wyoming, is part of a coalition of unions fighting the merger, which was announced in 2022.

Kroger and Albertsons executives have said the merger will position them better to compete against such non-union grocery giants as Walmart and Costco and discount stores such as Dollar General.

“Albertsons Cos. merging with Kroger will expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers’ shopping experience,” Albertsons said in an email. “Blocking this 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.”



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