PROVIDENCE – Rhode Island is among seven states urging U.S. antitrust enforcers to stop Kroger’s proposed $24.6 billion acquisition of Albertsons, Reuters News reported.
R.I. Secretary of State Gregg M. Amore joined six other secretaries of state, all Democrats, sent an Aug. 16 letter to the Federal Trade Commission seeking to nix the proposed deal between the grocery story giants, claiming the deal would give a combined Kroger/Albertsons nearly one-quarter of the U.S. food retail market.
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“We are strongly opposed to this merger and urge you to stop this corporate consolidation that is draining Americans of their hard-earned wages and livelihoods,” wrote the secretaries of state from Colorado, Arizona, Maine, Minnesota, New Mexico, Rhode Island and Vermont.
The FTC declined Reuters request for comment. Amore did not immediately respond to a request for comment as well.
A Kroger spokesperson told Reuters that the planned deal would be good for consumers and store workers. Large, nonunionized competitors such as Walmart and Amazon would be the only parties to benefit if it were blocked, the spokesperson said.
The FTC launched a federal antitrust probe into the deal, which was announced in October, according to Reuters.
The merger would allow the companies to capture nearly 16% of the U.S. grocery market, according to market researcher Numerator, CNBC reported on July 26.
Kroger is the second-largest grocer by market share in the United States, behind Walmart. Albertsons, which is the parent company of Star Market, is fourth, behind No. 3 Costco. Albertsons Cos. and Kroger currently operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers.
