Washington state AG sues to block Kroger-Albertsons grocery merger

Washington is challenging the merger of grocery giants Kroger and Albertsons, the first state to file suit to block the $25 billion dollar deal.

Attorney General Bob Ferguson says the merger is bad for Washington consumers. His office filed a lawsuit in King County Superior Court on Monday.

RELATED: Warning of higher grocery prices, Washington AG sues to stop Kroger-Albertsons merger

More than half of all supermarkets in Washington state are currently owned by either Kroger or Albertsons.

Ferguson, who’s running for governor, says a merger would eliminate head-to-head competition between the two largest grocery operators in the state.

“If Kroger and Albertsons merge, they will, simply put, dwarf the competition," he said.

Ferguson argues that means fewer choices for shoppers. He says he’s not convinced that the companies’ offer to sell 413 stores would solve the issue. He notes the buyer, C&S Wholesale Grocers, currently operates 23 stores nationwide and lacks the infrastructure to become a large-scale operator.

“The newly combined Kroger Albertsons brands will be immediately positioned to outcompete their former supermarkets while they transition to their new owner.”

Ferguson argues that the situation is similar to the last major grocery merger in 2015 where the divestiture failed. In a joint statement, Kroger and Albertsons calls the AG’s decision to sue premature. The Federal Trade Commission is still weighing the merger.

Read the full story on Washington's challenge to the Kroger/Albertsons merger here.