The U.S. Federal Trade Commission (FTC) sued to stop the $24.6 billion deal to merge grocery chains Kroger (Cincinnati) and Albertsons (Boise, ID), according to the Associated Press.
The FTC says the proposed merger eliminates competition within the grocery industry and would increase prices for millions of consumers. If the merger happens, the two companies will control 13 percent of the U.S. grocery market, according to Ken Goldman, an Analyst at J.P. Morgan.
Kroger and Albertsons are two of the largest grocers in the U.S. and agreed to merge in late 2022, saying it would help against other companies such as Walmart and Amazon.
Following the lawsuit’s filing, Kroger and Albertsons said they will challenge the block in court.
