Massive Legal Tsunami Awaits Kroger’s/Albertsons Merger

The mega-proposed merger between Cincinnati-based Kroger's and Boise-based Albertson is about to be hit with a massive legal tsunami. The merger has been touted by proponents, saying that the combined company will allow consumers to pay lower prices. Opponents reveal that a merger means less competitive pricing, lack of worker competition, and possible store closings.

Several senators on both sides of the political spectrum have voiced their opposition. The attorney generals of Washington State and Colorado have filed lawsuits against the merger. Bloomberg is reporting that other states, along with the Federal Trade Commission, are expected to file more lawsuits to prevent the merger.

The timing of both companies could not come at a worse time. Food costs have risen so dramatically that they now rival what Americans paid during President George H. W. Bush's presidency.

The president's horrific poll numbers could be another factor that will halt this merger. He has campaigned as a champion of blue-collar workers who have vilified big businesses. A combined Kroger/Albertsons would rival the most prominent American retailer, Walmart.

Industry concerns over what happens to workers who work for Fred Meyer (Kroger's) and Albertsons in Idaho include whether they will be forced to work for lower wages. The companies said they would sell off stores, but will the proposed new owners have the same connection to the community that both store chains have now?

Another troubling question is, will Kroger's have the same down-home community-based efforts currently supplied by Albertsons? The company has continued to raise money by donating to several Idaho-based nonprofits.

We'll continue to update you on this story as it develops.