Colorado Attorney General Phil Weiser has announced legal action against the proposed $25 billion merger between Kroger and Albertsons. Weiser, on Wednesday, accused the supermarket giants of “blatantly violating antitrust law” and emphasized the detrimental impact the merger would have on consumers, workers, and suppliers alike.
The lawsuit comes as a significant blow to the proposed merger, with Weiser asserting that the consolidation would effectively eliminate head-to-head competition between Kroger and Albertsons, leading to potential price hikes and reduced options for consumers. Notably, Kroger currently operates 148 stores in Colorado under banners such as King Soopers and City Market, while Albertsons manages 105 stores under its own name and the Safeway banner.
Of particular concern to Weiser is the concentration of market power that would result from the merger, especially in urban areas like Denver, where the potential for price manipulation looms large. Moreover, smaller markets such as Gunnison, where only two supermarkets operated by the merging rivals exist, would also be profoundly affected.
Read more: US Unions Talk Out Against The Albertsons-Kroger Merger
This legal action marks the second antitrust case filed by a state to block the Kroger-Albertsons merger, following Washington state’s lawsuit filed on January 15. Additionally, a pending consumer lawsuit in federal court in California seeks to halt the deal, reflecting widespread apprehension regarding the potential consequences of the merger.
While federal regulators at the Federal Trade Commission (FTC) are still deliberating on whether to challenge the merger, the involvement of multiple states in legal action adds a new dimension to the regulatory landscape. Christine Bartholomew, a law professor at the University at Buffalo, underscored the significance of state-level antitrust actions, noting that they pose separate legal threats that could derail the merger.
Responding to the legal challenges, Kroger issued a statement affirming its commitment to addressing antitrust concerns raised by various attorneys general and the FTC. The supermarket chain indicated its willingness to cooperate with regulatory authorities in navigating the complexities of the merger approval process.
As the legal battle unfolds, the fate of the Kroger-Albertsons merger hangs in the balance, with stakeholders closely watching developments that could reshape the landscape of the grocery industry in Colorado and beyond.
Source: Cincinnati
Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal
US-based nuclear power giant Constellation Energy has announced a landmark deal to acquire privately-held natural gas and geothermal company Calpine Corp for $16.4 billion in a move that reshapes the American energy landscape. The acquisition, one of the largest in the history of the U.S. power sector, comes at a time of surging electricity demand driven by the rapid expansion of energy-intensive technologies like artificial intelligence and the ongoing electrification of transportation and buildings.
According to Yahoo the agreement will transform Constellation into the largest independent power provider in the United States, with a diverse portfolio spanning nuclear, natural gas, and geothermal energy sources. The deal, which also includes Calpine’s debt, values the transaction at $26.6 billion.
Following the announcement, Constellation’s stock surged by as much as 10% before markets opened, with gains extending to 22% shortly after trading began. The company expects the acquisition to close in the second half of 2025. Once finalized, the merger is projected to add $2 billion in annual free cash flow, further strengthening Constellation’s financial position.
Read more: Federal Competition Office to Scrutinize High Electricity Prices in Germany
The acquisition reflects the growing urgency for reliable and sustainable energy solutions. Per Yahoo, the combined entity will boast nearly 60 gigawatts (GW) of low- and zero-emission capacity, allowing Constellation to solidify its position as a key player in the nation’s clean energy transition. CEO Joe Dominguez emphasized the critical need to meet rising energy demands, saying, “Demand for our products is expected to grow by levels we haven’t seen in a lifetime.”
The transaction significantly expands Constellation’s geographic footprint, particularly in the high-demand markets of Texas and California. With this deal, Constellation’s share of generation capacity in Texas will jump from 11% to 23%, while its presence in California will rise to 10%, up from a negligible amount. Both states rank among the most populous and energy-intensive in the country.
Aneesh Prabhu, an analyst with S&P, described the deal as transformative, noting that the merger will create “the largest coast-to-coast power generator” in the U.S. The acquisition will also boost Constellation’s workforce by 20%, adding approximately 2,750 employees to its ranks and bringing the total headcount to 16,500.
Source: Yahoo
Featured News
Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal
Jan 10, 2025 by
CPI
DOJ Sues to Block $570 Million Deal Between AMEX GBT and CWT
Jan 10, 2025 by
CPI
Meta Accused of Using Pirated Books to Train AI, Court Documents Reveal
Jan 9, 2025 by
CPI
Frank McCourt’s Project Liberty Eyes TikTok US Acquisition as Deadline Looms
Jan 9, 2025 by
CPI
Disney-Fubo Deal Sparks Antitrust Concerns from DirecTV, Dish, and EchoStar
Jan 9, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – CRESSE Insights
Dec 19, 2024 by
CPI
Effective Interoperability in Mobile Ecosystems: EU Competition Law Versus Regulation
Dec 19, 2024 by
Giuseppe Colangelo
The Use of Empirical Evidence in Antitrust: Trends, Challenges, and a Path Forward
Dec 19, 2024 by
Eliana Garces
Some Empirical Evidence on the Role of Presumptions and Evidentiary Standards on Antitrust (Under)Enforcement: Is the EC’s New Communication on Art.102 in the Right Direction?
Dec 19, 2024 by
Yannis Katsoulacos
The EC’s Draft Guidelines on the Application of Article 102 TFEU: An Economic Perspective
Dec 19, 2024 by
Benoit Durand