Lawmakers Rally Against Kroger-Albertsons Merger

More than two dozen members of Congress are working to stop a merger between Kroger and Albertsons. After filing an amicus brief with over two dozen members of Congress, Washington’s U.S. Rep. Pramila Jayapal and Oregon’s U.S. Sen. Ron Wyden — both Democrats — held a news conference outside a Northeast Portland Fred Meyer. “It is time to recall this lousy merger idea,” said Wyden.

The Federal Trade Commission has sued to stop the merger. “It combines the two largest pharmacies and supermarket operators in the state of Oregon. It would give just one company control of more than 30% of Oregon’s pharmacies and more than half of our grocery sales in Portland,” said Wyden. According to an Oregon Health Authority report last year, the merger between Kroger and Albertsons would give them 29% of the prescription drug market in Oregon. That’s more than double the market share of each of its three main competitors.

“Kroger and Albertsons runs the risk of driving up grocery prices for Oregonians and making it much harder for Oregonians to find a pharmacy,” said Wyden. Per OKC Fox, a spokesperson for Kroger responded with a statement reading in part: “It is disappointing that elected officials continue to misinform their constituents and attempt to influence the independent judicial process that is underway. The reality is that Kroger joining with Albertsons will mean lower prices and more choices for more customers in more communities, long-term job security, higher wages and more industry-leading benefits for associates and a strong unionized workforce.”

Related: Kroger-Albertsons Merger Could Give Walmart Shoppers A Low-Cost Grocery Alternative

Wyden is also concerned about how the merger could impact others in the market. “The merger also reduces the power of Oregon’s small farmers and growers and other small businesses because they picked up clout over the years by being able to negotiate the price of their goods,” he said. In response, Kroger tells us that matters would be worse without the merger. “If the merger is blocked, the non-union retailers like Walmart and Amazon will become even more powerful and unaccountable,” it said.

The ongoing debate over the merger’s potential impact continues to escalate as both sides present their cases. According to OKC Fox, lawmakers like Jayapal and Wyden remain steadfast in their opposition, while Kroger maintains that the merger would ultimately benefit consumers and employees alike.

Source: OKC Fox