Kroger’s $25b acquisition of Albertsons, will put 5,000 stores under monopoly.  – Grocery consumers.

Attempts to halt Kroger Co.’s planned $25 billion acquisition of rival Albertsons Companies Inc. have been made in a private lawsuit filed in California on Thursday. State attorneys general, consumer advocacy organizations, and some US lawmakers have questioned the deal as being detrimental to grocery market competition.

25 people from states like California, Texas, and Florida filed the case on their behalf, claiming that the merger “would be utilized to increase grocery costs, reduce the quality of food, remove employment, close stores, and give less choice for consumers.”

According to revenue, Albertsons is the second-largest grocery chain in the United States, behind Kroger. If the merger, which was announced in October, is completed, nearly 5,000 grocery outlets will be consolidated under a single corporate structure.

In addition to stating that they are collaborating with the US Federal Trade Commission on its regulatory assessment, the companies have defended the acquisition as offering a “more efficient distribution chain.” The case seems to be the first private lawsuit opposing the agreement.

On Friday, an Albertsons spokesman declined to comment, and a Kroger spokesperson did not immediately return a message requesting comment.

Balducci’s, Shaw’s, Kings, and Safeway are among the establishments under Albertsons’ control. King Soopers, Pay Less, and Harris Teeter are just a few of the store brands that Kroger operates.

In addition to any enforcement actions launched by a state or federal body enforcing competition laws, U.S. antitrust law permits private consumers to sue over planned mergers and acquisitions.

There is no doubt that Albertsons is a substantial rival of Kroger’s, according to plaintiffs’ attorney Joseph Alioto of San Francisco, who was one of the attorneys who brought the complaint. He claimed they are eliminating competition.

A $4 billion dividend that Albertsons paid to shareholders after beating a challenge by the Washington state attorney general was also sought to be forfeited, according to the lawsuit. The payout “gravely impairs Albertsons’ ability to compete,” according to the plaintiffs.