The government is suing to block a grocery store merger that regulators say would put upward pressure on already elevated food prices.

The Federal Trade Commission filed a lawsuit in federal court Monday opposing Kroger’s (KR) acquisition of Albertsons, a $24.6 billion🍬 deal announced in 2022 that would create a chain of 5,000 sto📖res. 

“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” Henry Liu, director of the FTC’s Bureau of Competition said in a press release.

Consumer advocates and politicians, including President Joe Biden, have voiced concerns that grocery store merg🤪ers could reduce competition and give companies more power to raise prices at a time when household budgets are 澳洲幸运5官方开奖结果体彩网:reeling from significant increases in the cost of food over the past few years. Despite inflation cooling in recent months, grocery prices that surged in the pandemic have stayed high. The cost of food at home was 25.1% higher in January than before the pandemic, according to the Consumer Price Index.

The companies contend the suit is misguided because the merger would lead to more competition and lower prices for customers.

“Contrary to the FTC’s statements, blocking Kroger’s merger with Albertsons Companies will actually harm the very people the FTC purports to serve: America’s consumers and workers,” a spokesperson for Kroger said in a statement.

“If the Federal Trade Commission is successful in blocking this merger, it would be hurting customers and helping strengthen larger, multi-channel retailers such as Amazon, Walmart and Costco – the very companies the FTC claims to be reining in – by allowing them to continue increasing their growing dominance of the grocery industry,” a spokesperson for Albertsons said in a statement.

The FTC said the merger would eliminate existing competition between Kroger and Albertsons, leading to lower wages for store workers as well as higher prღices.

Kroger stock fell 1.72% by 2 p.m. Eastern Time.