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Illinois AG sues to stop Albertson's from paying $4B
The massive merger between Albertsons and Kroger has hit a roadblock.
CHICAGO - The massive merger between Albertsons and Kroger has hit a roadblock.
Illinois Attorney General Kwame Raoul is suing Albertsons to stop the nearly $4 billion payout.
Kroger is also named in the suit.
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Raoul wants himself and other attorneys general to review the merger before it's complete. He thinks it could severely reduce competition, leading to increased food prices.
Meanwhile, Congresswoman Jan Schakowsky, a Democrat representing Chicago, has signed a letter to the Federal Trade Commission, asking the agency to "closely consider" both companies' history of "monopoly, labor and consumer abuses," and "whether the acquisition would exacerbate these abuses for American families."
The letter is also signed by senators Elizabeth Warren and Bernie Sanders.
Experts had predicted the proposed deal would face backlash from politicians and strict scrutiny from federal regulators, given antitrust concerns and the inflationary price hikes that have hit grocery aisles.