Colorado’s Attorney General is taking on grocery giants Kroger and Albertsons in court in an attempt to block a $25 billion merger that would see King Soopers and Safeway stores affected across the state. The lawsuit, which alleges the merger violates antitrust laws in Colorado, is set to begin on Monday, marking the start of the third trial over the deal. Kroger argues that the merger is necessary for them to compete with massive global competitors like Walmart, Costco, and Amazon, and states that they will lower prices post-merger.
The state’s concerns include a potential decrease in grocery competition, leading to higher prices and less variety of locally-sourced products. They also worry about potential store closures and are skeptical of plans to divest Safeway stores to a distributor with limited retail experience. Additionally, allegations of an illegal agreement between the grocers to prevent unionized workers from taking jobs at competitor stores will also be addressed during the trial.
Despite ongoing trials in Oregon and Washington, the Colorado case is expected to conclude by October 18. The state is determined to block the merger until the deal is abandoned or a court ruling prevents it. Attorney General Phil Weiser emphasized the local impact of the merger in Colorado, pointing out potential risks to rural areas of the state. This case is significant for Colorado, as it is the first time the state has pursued an antitrust case in state court to stop a merger.
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