The State of California is reported to be in the advanced stages of preparing a lawsuit aimed at halting the proposed $24.6 billion merger between Albertsons Cos. and Kroger Co. California’s Attorney General Rob Bonta confirmed the action, saying “We are moving toward acting…Right now, there’s not a lot of reason not to sue.”
The Attorney General had earlier met with U.S. Federal Trade Commission Chair, Lina Khan, with whom he discussed the details of the deal. The specific issues that arose during their discussions majorly centered on their shared concern about the potential impact of the merger on consumer prices, choice, and labour conditions.
Such a suit could pose significant legal hurdles for the proposed merger. If successful, the intervention could force Albertsons Cos. and Kroger Co. to revise their merger plans to satisfy regulatory requirements or potentially abandon the deal altogether.
As this case continues to develop, it will be important to monitor any official announcements and the responses of Albertsons and Kroger to the proposed lawsuit. There will also be significant interest in whether other states choose to take similar legal action.
More details on this story can be found on its original publication on Bloomberg Law.