Kroger, Albertsons unions, antitrust specialists urge FTC to dam merger -letter By Reuters

By Siddharth Cavale

NEW YORK (Reuters) -Kroger Co’s acquisition of Albertsons Corporations Inc may additional exacerbate earnings inequality by way of job losses and eroding wages at a time of excessive inflation, a gaggle of the retailers’ greatest unions and antitrust specialists wrote in a letter seen by Reuters on Thursday.

“In lots of markets throughout the nation, grocery competitors would stop, seemingly leading to worker layoffs and better costs,” they wrote in a letter addressed to the Federal Commerce Fee (FTC) chair Lina Khan, urging the company to dam the deal.

“The merger must be blocked, as it might hurt staff, customers and communities,” mentioned the United Meals & Business Employees (UFCW) Native 400, who authored the letter.

Twenty-six organizations undersigned the message, together with the American Financial Liberties Challenge, Heart for Financial and Coverage Analysis, together with seven UFCW native chapters representing greater than 100,000 Kroger (NYSE:) and Albertsons’ staff.

“Individuals residing in poverty will endure most of all—not solely due to skyrocketing costs as competitors vanishes, however by way of possible retailer closures,” they added.

The letter, first seen by Reuters, additionally urged the FTC to instantly examine Albertsons’ “uncommon” $4 billion dividend to shareholders on Nov. 7, which it mentioned would go away the corporate “largely depleted of liquid property” and “unsustainable as an ongoing concern.”

Attorneys common of three states and the District of Columbia have made comparable claims this week, submitting lawsuits looking for to dam the dividend cost introduced as a part of Kroger’s $25 billion acquisition of rival Albertsons final month.

The deal has confronted resistance from a number of quarters moreover its unionized staff. U.S. senators are conducting hearings, whereas a gaggle of attorneys common are conducting their very own investigations.

It’s not clear if the FTC will take measures towards this deal, however the company has blocked smaller offers beforehand, together with that of writer Penguin Random Home and Simon & Schuster.

“The allegation that this dividend will someway hinder our skill to compete within the market is meritless,” an Albertsons spokesperson mentioned in an emailed response to the letter.

As a part of the deal, the mixed firms have mentioned they are going to make investments of about $500 million to decrease costs, $1.3 billion into Albertsons’ shops to enhance the client expertise and $1 billion to proceed elevating affiliate wages and advantages in response to inflation.

Kroger and the FTC weren’t instantly obtainable to remark.