© Reuters. FILE PHOTO: The headquarters of the Kroger supermarket chain in Cincinnati, Ohio, U.S., June 28, 2018. REUTERS/Lisa Baertlein/File Photo
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By Diane Bartz
WASHINGTON (Reuters) – California Attorney General Rob Bonta said on Thursday his office was concerned about Kroger’s (NYSE:) proposed deal to buy rival Albertsons (NYSE:) for $24.5 billion, and that You could file a lawsuit to stop it.
Bonta said the decision hasn’t been made yet, but added: “At this point there isn’t much reason not to sue.”
Bonta cited concerns about the prospect of higher prices for consumers, lower payments to California farmers, the possibility of creating food deserts and possible adverse impacts on workers.
The deal, announced in October 2022, would create a supermarket chain with almost 5,000 stores. In September, the companies announced a plan to sell more than 400 grocery stores to C&S Wholesale Grocers in an effort to gain regulatory approval for the deal.
The companies did not immediately respond to a request for comment.
Walmart (NYSE:) is the largest supermarket in the United States with 34.8% of the market, according to Food and Water Watch.
Bonta, speaking in Washington, said he had met with Federal Trade Commission Chairwoman Lina Khan and that the grocery merger had been discussed along with other issues. The FTC is reviewing the deal to make sure it does not violate antitrust law.
Bonta’s office had also been investigating whether the deal would make it harder for people in poorer parts of cities or rural areas to buy drugs because it would create “pharmacy deserts.”
Research from the University of Southern California in 2021 found that one in three neighborhoods in 30 populous US cities had inadequate access to needed pharmaceutical services.
