September 19, 2024 – OAKLAND, CA – California Attorney General Rob Bonta on Wednesday issued a statement following the conclusion of the preliminary injunction hearing in the state’s lawsuit challenging Kroger’s proposed $24.6 billion purchase of Albertsons:

"This week, California’s antitrust hearing against Albertsons and Kroger came to an end. My office proudly joined the Federal Trade Commission, seven other states, and the District of Columbia in a lawsuit that we believe is critical to protecting California consumers, workers, and competitive markets here and across the country," said Attorney General Bonta. “If these two giants of the retail grocery industry combine forces, it’s likely that we’ll see reduced competition, a blow to unions looking to negotiate better working conditions, and higher food prices at a time when so many families are struggling to get food on the table. We must ensure corporations follow the rules — as the People’s Attorney, I am committed to fighting unlawful corporate consolidation that threatens to increase prices and reduce good jobs.”

Background

In February 2024, Attorney General Bonta joined the Federal Trade Commission and a bipartisan coalition of states in filing a lawsuit seeking to block the proposed Albertsons-Kroger merger, alleging that it is in violation of the federal Clayton Act. Businesses facing less competition have the ability to charge higher prices. Anticompetitive supermarket mergers can result in other harms, including reduced labor market competition, which may lower wages or slow wage growth, worsen benefits or working conditions.

In California, Kroger’s $24.6 billion purchase of Albertsons is expected to further consolidate the highly concentrated retail grocery market in Southern California, leading to fewer choices and higher prices. The merger is also expected to reduce the ability of unions to negotiate working conditions at these stores, impacting thousands of employees in California. In August 2024, Attorney General Bonta issued a statement on the first day of trial. 

In October 2022, Attorney General Bonta and five other state attorneys general sent a letter to Albertsons and Kroger demanding that Albertsons delay a $4 billion payout to stockholders until state attorneys general and the FTC complete their review of its proposed merger with Kroger, to ensure that the proposed action would not result in higher prices for consumers, suppressed wages for workers, or other anticompetitive effects. In November 2022, Attorney General Bonta, along with the attorneys general of the District of Columbia and Illinois, asked the D.C. District Court to temporarily block Albertsons' planned $4 billion payment amid concerns that the payment would dramatically hamper Albertsons' ability to compete. Also in November 2022, Attorney General Bonta, along with the attorneys general of the District of Columbia and Illinois, filed a motion for a preliminary injunction to block Albertsons' planned $4 billion payment of a "special dividend" to shareholders.

Source: CA DOJ