It’s been nine months since Kroger and Albertson’s announced plans to merge, but the likelihood of it actually happening is fading, said local leaders of United Food and Commercial Workers in a July 11 press conference via Zoom.
The merger is opposed by a coalition of over 100 unions and community groups, led by UFCW Local 3000 in Seattle. They say a merger of the nation’s largest and second-largest grocery giants will result in higher prices and lower wages.
In February, the U.S. Federal Trade Commission (FTC) filed suit in U.S. District Court in Portland to block the merger on the grounds that it would violate U.S. laws meant to prevent monopolies. That case is set for trial Aug. 26.
In fact, the merger will have to get past judges in four separate cases in the next two months, and a loss in any one of them could spell the end of the deal:
- A separate FTC case is set to go before a federal administrative law judge July 31;
- A lawsuit by the Colorado attorney general goes to trial Aug. 12; and
- A lawsuit by the Washington attorney general goes to trial Sept. 16.
If Kroger and Albertsons lose in Colorado or Washington, the merger could not go forward there, hamstringing the deal.
Under the merger agreement, Kroger’s offer to buy Albertson’s stock expires Oct. 9. John Marshall, an analyst employed by Local 3000, said the stock market is already predicting the merger is toast. Under the terms of the deal, Kroger is supposed buy Albertsons stock at $27.25 a share. So the fact that Albertsons stock was selling for $19.76 a share as of July 16 is a sign that investors don’t think that’s going to happen.
