Albertsons Cos. told a federal judge in the start of a hearing that layoffs, store closures and exiting markets would be on the table if its planned merger with The Kroger Co. would be blocked by the Federal Trade Commission, The Associated Press reported.
The companies announced the intended merger in October 2022, in which The Kroger Co. would buy the Boise, Idaho-based Albertsons Cos. for $24.6 billion.
Since then, the companies have faced a suit from the FTC to block the deal, saying it was anticompetitive. The FTC in its suit alleges the deal would lead to higher prices on groceries, lower-quality products and goods and less choice for consumers.
Kroger and Albertsons announced it would sell off 579 stores, three distribution centers and its Denver Dairy Plant to C&S Wholesale Grocers as part of its divestiture ahead of the merger.
The AP reported in the three-week hearing that opened Monday that the FTC hopes to block the merger while its complaint goes before an in-house administrative law judge.
Attorney generals in Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming all joined the FTC’s case. Meanwhile, attorney generals in Washington and Colorado have filed separate cases to block the merger.
