Albertsons-Kroger appeal win is unlikely: Former antitrust regulator
Albertsons (ACI) is filing a lawsuit against Kroger (KR) after a federal judge blocked their merger, citing antitrust concerns. The lawsuit claims Kroger breached its contract agreement and failed to exercise its "best efforts" to get regulatory approval. Catalysts Co-Hosts Seana Smith and Madison Mills sit down with former Attorney General at the Antitrust Division of the US Department of Justice (DOJ) Bill Baer to examine the latest news about the failed merger just ahead of President-elect Donald Trump's second term in office. "The parties have a right to appeal, but you have two courts who ruled yesterday, one in Washington — a state court — and then a federal judge in Oregon, and they basically, in very detailed opinions, said the same things," Baer, who is also the former director of the Federal Trade Commission's (FTC) Bureau of Competition, says. "Kroger and Albertsons are each other's closest competitors in many markets all across the country, and because they're closest competitors, if Kroger is allowed to absorb Albertsons in its various brands, it will have extra pricing muscle [and] it will be able to raise prices," he says, adding that "they compete directly with one another," rather than Costco (COST) or Walmart (WMT) the judge found. The former DOJ leader says, "I think this deal goes away, and frankly, it should." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Naomi Buchanan.
