LAS VEGAS (KTNV) — Nevada will join a coalition of attorneys general suing to stop a proposed merger of Kroger and Albertson's, the two largest supermarket chains in the U.S.
Attorney General Aaron D. Ford announced the lawsuit Monday morning, writing that "Nevadans made their concerns known regarding this merger, and we listened."
Chief among those concerns, according to Ford, is that the merger will lead to higher grocery prices for families in Nevada.
"This merger would create an anticompetitive marketplace, raise prices on everyday Nevadans and harm grocery store employees," Ford stated. "As anyone who does the shopping for their family knows, grocery prices have climbed high in recent years. Nevadans don't deserve for those prices to climb any higher."
Ford previously held a series of community listening sessions to get feedback on Nevadans' concerns about the proposed merger of Kroger, which operates Smith's grocery stores, and Albertson's.
The lawsuit seeks to block the proposed merger, arguing that it violates the federal Clayton Act which prohibits companies from acquiring assets in cases there the result would be substantially less competition or a monopoly.
Beyond concerns over higher prices due to lack of competition in the local grocery market, Ford argues the merger would also reduce labor market competition, which could result in lower wages and less benefits for frontline workers in the community.
The Federal Trade Commission is also joining the lawsuit filed by Ford and attorneys general from eight other states, including Arizona, California, the District of Columbia, Illinois, Maryland, New Mexico, Oregon and Wyoming.
