FTC Files Lawsuit to Halt Kroger-Albertsons Merger, Citing Concerns Over Higher Grocery Prices

The FTC sued to block Kroger's proposed $25 billion merger with Albertsons, citing risks of higher grocery prices and weaker competition. However, blocking the deal may not necessarily save smaller, local grocery stores, as consolidation in the sector has been growing for decades. High food inflation helped motivate the FTC's action, with grocery costs up 26% since 2020 according to government data. The companies plan to appeal the FTC lawsuit and some analysts expect the merger to be approved.