Kroger-Albertsons mega-merger blocked by federal judge; "It was about jacking up their own earnings" says AG
PHOENIX - Arizona Attorney General Kris Mayes says the merger would've had a ripple of damaging effects to Arizona's economy, loss of jobs, and leaving residents in rural areas without basic necessities. She called December 10's ruling a win.
"It was about jacking up their own earnings and harming consumers."
On Tuesday, a federal judge blocked Krober's proposed $25 million tie-up with Albertsons. Mayes and other attorneys general said the merger would have increased grocery prices across the country – something Valley shoppers already feel enough of.
"It's just unsustainable. Things have gone up double, some products triple. So, if a store were to shut down.. that would be.. pretty impactful," said David Jones, a Valley resident.
Mayes called the decision the beginning of the end of corporations hurting Arizonans. The Arizona AG's office, along with eight other states, joined the Federal Trade Commission's lawsuit.
"These two companies employ 35,000 people in Arizona, and they have 250 grocery stores across the state, and they are two of the seven biggest employers in Arizona," she said.
Fewer stores means a loss of jobs, loss of food and access to pharmacies. Leaving people like Cody Meyers worried for his parents.
"It makes it harder. Taking a trip out to get a prescription that they need. The more convenient it is for someone like them, it makes it easier."
Rural cities would take the hardest hit, turning them into food and pharmacy deserts.
"The whole town would've had to drive 50 miles to get groceries. That whole town could've seen lots of small businesses shut down around the grocery store," said Mayes.
Two judges in two separate states blocked the merger. The federal case now moves to the FTC.
What's next?
Mayes has made no mention of a run for governor. She says her priority is fighting back against corporations and tackling the rise in rent prices across the Valley.
Albertsons gives up on Kroger merger, files lawsuit against grocery chain
This comes a day after the proposed merger between the supermarket giants floundered after judges overseeing two separate cases both halted the deal.