As California prepares lawsuit to block Albertsons acquisition, Kroger claims unions would benefit

By Wallace Witkowski

Kroger fires back that blocking deal will only benefit non-union retailers like Walmart and Amazon

As California appears prepared to sue to block Kroger Co.'s $24.6 billion acquisition of Albertsons Cos., Kroger fired back Thursday that there's a big reason not to block the deal, claiming it would be better for union workers.

California Attorney General Rob Bonta told media present in Washington D.C. that there was "not a lot of reason not to sue" to block the deal, and that his office was "moving toward acting," after meeting with Federal Trade Commission Chair Lina Khan earlier Thursday, according to Bloomberg News.

In a response late Thursday, Kroger argued workers and customers would benefit from the merger.

"Only non-unionized retailers, like Walmart and Amazon, will benefit if this merger is blocked," Kroger said in a statement. "In fact, Kroger joining with Albertsons will mean lower prices for customers, secure union jobs and more food directed to hungry families, with 10 billion meals committed to people in need across America by 2030."

Back in September, Kroger (KR) and Albertsons (ACI) said they would sell more than 400 stores in a $1.9 billion deal to gain regulatory approval. Kroger announced the $24.6 billion offer to acquire Albertsons almost a year ago.

Kroger shares, which had originally been down almost 2% after hours, swung to a 1.3% gain in the extended session, while Albertsons shares remained down 0.8% after hours.

Over the past 12 months, Kroger shares have declined almost 4%, while Albertsons shares have dropped 11.5%, versus a 13% advance on the S&P 500 index SPX.

Meanwhile, Walmart (WMT) shares have gained 21% over the past 12 months, while Amazon.com Inc. (AMZN) shares have gained 17%.

-Wallace Witkowski

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-12-23 2026ET

Copyright (c) 2023 Dow Jones & Company, Inc.