Attorney General Aaron Ford announced a series of listening sessions regarding the pending grocery store merger between Albertsons (Albertsons, Safeway and Vons) and Kroger (Smiths). The proposed merger is being reviewed to determine its impact on Nevada grocery stores. August 21 2023. Brian Ramos
Wednesday, Dec. 20, 2023 | 4:04 p.m.
U.S. Senator Jacky Rosen (D-NV) attends the grand opening of the Nevada Veterans Business Outreach Center Monday, Nov. 20, 2023.
Nevada U.S. Sen. Jacky Rosen on Tuesday sent a letter to Federal Trade Commission chairwoman Lina Khan opposing the proposed merger between two of the largest grocery chains in the country, joining a growing list of lawmakers seeking to nix the deal.
Rosen, a Democrat, said she has “significant concerns” about the proposed merger between The Kroger Company and Albertsons Companies, Inc., and the impact it could have on what she called already high grocery costs.
Kroger announced plans last year for a $24.6 billion acquisition of Albertsons, with the intent of closing the deal in the first quarter of 2024. Bloomberg first reported last week that Kroger, Albertsons and the FTC agreed to move a decision date to Jan. 17, according to a filing in a California lawsuit challenging the merger.
“At a time when working families in Nevada and across the country are facing high costs for housing, gas, groceries, energy and more, the Federal Trade Commission must fully exercise its antitrust authority to consider blocking this merger,” Rosen wrote.
“Nevadans are therefore understandably concerned that this merger could mean less competition and higher food costs, with the deal giving the newly-merged company the power to unilaterally raise prices in Nevada supermarkets,” she wrote.
Khan, who was appointed to lead the FTC by Democratic President Joe Biden, was in Southern Nevada in September to take part in attorney general Aaron Ford’s statewide listening tour regarding public concerns surrounding the merger. Ford, along with officials in 14 other states, are mulling possible legal action to contest the acquisition.
Kroger announced the sale of 413 stores, including 15 Albertsons stores in Nevada, to grocer C&S to clear regulatory hurdles. The company said it couldn’t announce which stores would close, citing FTC rules.
Under state law, the Attorney General’s Office has the authority to review the proposed merger to insure it does not “unfairly disrupt competition” and is “fair to local grocery stores, consumers, employees and others,” according to a news release.
In Rosen’s letter, she states constituents have yet to receive assurances the proposed deal will not further increase food costs in the face of year-over-year inflation that saw grocery prices increase by over 10% since 2022.
“While inflation is slowing down in 2023, that does not mean that prices are going down, but merely that they are not going up as quickly as last year,” Rosen wrote. “Nevadans cannot afford to get hit with even higher grocery prices as a result of this merger.”
Last week, Reuters reported Sens. Elizabeth Warren (D-Mass.), Hazie Hirono (D-Hawaii), Bernie Sanders (D-Vermont) and Cory Booker (D-N.J.), along with U .S. Reps. Summer Lee (D-Pa.) and Alexandria Ocasio-Cortez (D-N.Y.) also expressed opposition to the merger, on grounds it would harm consumers, workers and the grocery industry if approved.
But other lawmakers, including congressmen Greg Landsman, Brian Fitzpatrick and Josh Gottheimer have sent letters to the FTC in support of the deal, Reuters reported.
Read the whole letter here.
