Washington state trial to stop Kroger, Albertsons merger begins

As the federal case against the Kroger, Albertsons merger winds down in Portland, Ore., the state of Washington’s attempt to block the deal is taking center stage just a few hundred miles away.

Washington Attorney General Bob Ferguson originally filed a lawsuit in King County Superior Court in Seattle in January, arguing that the $24.6 billion merger deal would lead to higher prices for consumers.

The Washington state trial starts Monday while the federal government’s case against the Kroger, Albertsons merger in Oregon is expected to hear closing arguments Tuesday.

Washington felt the effects of a merger gone bad firsthand about a decade ago when Albertsons bought Safeway. Albertsons sold 146 stores to Bellingham, Wash.-based Haggen to help satisfy antitrust regulators. However, less than six months later Haggen closed 127 stores, including 14 in Washington, and laid off thousands of workers.

Union workers against the Kroger, Albertsons deal held a rally on Monday near Seattle City Hall before the first day of the Washington trial. Ferguson spoke at the event, backed by UFCW 3000 union workers.

Kroger CEO Rodney McMullen and Albertsons CEO Vivek Sankaran both testified during the federal trial on Sept. 5.

It was the biggest day of testimony, and the grocery execs faced intense questioning in court on a wide variety of topics related to the $24.6 billion merger, including executive compensation and allegations of destroying evidence.

McMullen said some store closures are possible if the merger goes through while Sankaran noted store closures and layoffs would be necessary if the deal is rejected.

The state of Colorado will take its turn to dissolve the Kroger, Albertsons merger during a trial that begins Sept. 30. Colorado Attorney General Phil Weiser filed the lawsuit in February, arguing the grocery market is already highly concentrated, and the merger would hurt shoppers, workers, and suppliers.