ALBUQUERQUE, NM – New Mexico Attorney General Raúl Torrez, in collaboration with the Federal Trade Commission (FTC) and attorneys general from several states, has filed a lawsuit to challenge the impending merger of Kroger and Albertsons, the nation’s leading supermarket chains. This legal action, announced today, raises serious concerns about the potential for reduced competition and increased food prices across the country, particularly in New Mexico.
Kroger and Albertsons, recognized as the largest supermarket entities in the United States, also hold the top positions in New Mexico's grocery market.
According to Torrez, the merger poses a direct threat to competition within the state, where both companies operate popular stores under the banners of Smith’s, Price-Rite, Albertson’s, and Safeway. For the residents of Cibola County, particularly those shopping at Smith's in Grants, the merger could signal a significant shift in their grocery shopping experience, potentially leading to higher prices and less variety, Torrez argued.
Torrez expressed his concerns, saying, “My office proudly announces its collaborative stance alongside multiple states and the Federal Trade Commission in a collective effort to challenge and prevent this anti-competitive merger that threatens fair market dynamics.” He further emphasized the bipartisan nature of the lawsuit, highlighting the shared commitment to protecting consumers and ensuring fair wages for employees in the face of potential market monopolization.
The lawsuit is grounded in the principles of the federal Clayton Act, which bars acquisitions that may significantly lessen competition or lead to monopolization. The coalition includes Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, Oregon, and Wyoming, this team argues that the Kroger-Albertsons merger could lead to higher prices for consumers, reduced quality of goods, and negative impacts on employee wages and working conditions due to diminished labor market competition.