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Negotiations begin in the first case between Kroger-Albertsons and the FTC




The updated divestment package increases the total number of stores by 166, meaning that 579 stores will now be sold to the new owner C&S, which will continue operations as before.

As the first trial begins in Portland, Oregon, new arguments for and against the merger of Kroger BB #:100073 and Albertsons BB #:193326 are coming to light.

Eight states and the District of Columbia have joined the Federal Trade Commission in asking that the U.S. District Court in Portland temporarily block the merger while an administrative law judge reviews it. This is not the only lawsuit challenging the merger, with others in Colorado and Washington scheduled for September.

As the trial has been covered in recent days, several new aspects have come to light, including that this merger could be a lifeline for Albertsons, the Boise-based company. A lawyer for the retailer said the company may have to sell itself, lay off employees, exit markets or “fundamentally change its cost structure.”

Meanwhile, the FTC presents evidence showing that Kroger raised prices on key grocery items “significantly more than cost inflation.”

Here is a summary of the headlines:


Pamela Riemenschneider is a retail editor at Blue Book Services.