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FTC and 9 states sue to block Kroger-Albertsons supermarket merger
Kroger first announced its plans to buy Albertsons in October 2022.
Rogelio V. Solis/AP
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Rogelio V. Solis/AP
Kroger first announced its plans to buy Albertsons in October 2022.
Rogelio V. Solis/AP
U.S. regulators and nine state attorneys general are suing to stop the $24.6 billion merger of Kroger and Albertsons, the country’s two largest supermarket chains.
The companies have presented the deal as existential to surviving in the grocery business today. But the lawsuit, filed in federal court in Oregon on Monday, says it’s anticompetitive.
The Federal Trade Commission argues that Kroger’s purchase of its biggest grocery-store rival would form a colossus that would lead to higher prices, lower-quality products and services, and “eliminate fierce competition” for both shoppers and workers.
The companies have argued that together they could better face stiffening competition from Amazon, Walmart, Costco and even dollar stores. In fact, Kroger on Monday argued the FTC’s rejection of the merger would lead to higher food prices and fewer grocery stores.
“This decision only strengthens larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry,” a Kroger spokesperson said in a statement.
Albertsons shared a similar statement, adding that the FTC’s view of the grocery industry is “outdated” and it looked forward to presenting its views in court.
Kroger and Albertsons had cushioned their pitch to regulators with a plan to sell off up to 650 stores in areas of the country where they overlap. But the FTC says the proposed sale of stores is inadequate and “falls far short of mitigating the lost competition between Kroger and Albertsons.”
In the months leading up to the agency’s decision, some supermarket employees, state officials and lawmakers had argued the merger would reduce options for customers and employees, farmers and food producers. Unions — the Teamsters and the United Food and Commercial Workers International — have expressed concerns about the tie-up.
Ohio-based Kroger is the biggest U.S. supermarket operator with more than 2,700 locations; its stores include Ralphs, Harris Teeter, Fred Meyer and King Soopers. Idaho-based Albertsons is the second-largest chain with nearly 2,300 stores, including Safeway and Vons. Together, the two employ some 720,000 people across 48 states and overlap particularly in the West.
The FTC, which had reviewed the deal for more than a year, says in a press release that an executive from one of the two chains “reacted candidly” to the proposed merger by saying: “You are basically creating a monopoly in grocery with the merger.”
Attorney generals of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming are joining the FTC in its lawsuit to block the deal.
The attorneys general of Washington and Colorado already have filed their own lawsuits to stop Kroger from buying Albertsons. But the companies’ plan recently won support of one local union chapter — representing workers in Oregon, Idaho and Washington — which argued that Albertsons’ owner would likely sell the company anyway, potentially to a worse outcome.
Kroger and Albertsons, trying to convince regulators that the merger wouldn’t reduce local competition, had agreed to sell hundreds of stores in overlapping markets to C&S Wholesale Grocers, a supply company that runs some Piggly Wiggly supermarkets.
C&S agreed to buy retail locations as well as some private brands, distribution centers and offices. The company said it was “committed to retaining” the stores’ existing workers, promising to recognize the union workforce and keep all collective bargaining agreements.
In recent years, many antitrust experts — including those now at the FTC — have questioned the effectiveness of divestitures as a path to approve mergers.
“C&S would face significant obstacles stitching together the various parts and pieces from Kroger and Albertsons into a functioning business—let alone a successful competitor against a combined Kroger and Albertsons,” the FTC says in its release.
When Albertsons itself merged with Safeway in 2015, for example, the FTC required it to sell off 168 stores as part of the deal. Within months, one of its buyers filed for bankruptcy protection and Albertsons repurchased 33 of those stores on the cheap.
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BBC Verify: Satellite image shows tanker seized by US near Venezuela is now off Texas
Trump was listed as a passenger on eight flights on Epstein’s private jet, according to emailpublished at 11:58 GMT
Anthony Reuben
BBC Verify senior journalist
One of the Epstein documents, external is an email saying that “Donald Trump traveled on Epstein’s private jet many more times than previously has been reported (or that we were aware)”.
The email was sent on 7 January 2020 and is part of an email chain which includes the subject heading ‘RE: Epstein flight records’.
The sender and recipient are redacted but at the bottom of the email is a signature for an assistant US attorney in the Southern District of New York – with the name redacted.
The email states: “He is listed as a passenger on at least eight flights between 1993 and 1996, including at least four flights on which Maxwell was also present. He is listed as having traveled with, among others and at various times, Marla Maples, his daughter Tiffany, and his son Eric”.
“On one flight in 1993, he and Epstein are the only two listed passengers; on another, the only three passengers are Epstein, Trump, and then-20-year-old” – with the person’s name redacted.
It goes on: “On two other flights, two of the passengers, respectively, were women who would be possible witnesses in a Maxwell case”.
In 2022, Ghislaine Maxwell was sentenced to 20 years in prison, external for crimes including conspiracy to entice minors to travel to engage in illegal sex acts and sex trafficking of a minor.
Trump was a friend of Epstein’s for years, but the president has said they fell out in about 2004, years before Epstein was first arrested. Trump has consistently denied any wrongdoing in relation to Epstein and his presence on the flights does not indicate wrongdoing.
We have contacted the White House for a response to this particular file.
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‘Music makes everything better’: A Texas doctor spins vinyl to give patients relief
Dr. Tyler Jorgensen sets “A Charlie Brown Christmas” on a record player at Dell Seton Medical Center in Austin Texas. He uses vinyl records as a form of music therapy for palliative care patients.
Lorianne Willett/KUT News
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Lorianne Willett/KUT News
AUSTIN, TEXAS — Lying in her bed at Dell Seton Medical Center at the University of Texas at Austin, 64-year-old Pamela Mansfield sways her feet to the rhythm of George Jones’ “She Thinks I Still Care.” Mansfield is still recovering much of her mobility after a recent neck surgery, but she finds a way to move to the music floating from a record player that was wheeled into her room.
“Seems to be the worst part is the stiffness in my ankles and the no feeling in the hands,” she says. “But music makes everything better.”
The record player is courtesy of the ATX-VINyL program, a project dreamed up by Dr. Tyler Jorgensen to bring music to the bedside of patients dealing with difficult diagnoses and treatments. He collaborates with a team of volunteers who wheel the player on a cart to patients’ rooms, along with a selection of records in their favorite genres.
“I think of this record player as a time machine,” he said. “You know, something starts spinning — an old, familiar song on a record player — and now you’re back at home, you’re out of the hospital, you’re with your family, you’re with your loved ones.”
Daniela Vargas, a volunteer for the ATX-VINyL program, wheels a record player to the hospital room of a palliative care patient in Austin, Texas.
Lorianne Willett/KUT News
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The healing power of Country music… and Thin Lizzy
Mansfield wanted to hear country music: Willie Nelson, Merle Haggard, George Jones. That genre reminds her of listening to records with her parents, who helped form her taste in music. Almost as soon as the first record spins, she starts cracking jokes.
“I have great taste in music. Men, on the other hand … ehhh. I think my picker’s broken,” she says.
Other patients ask for jazz, R&B or holiday records.
The man who gave Jorgensen the idea for ATX-VINyL loved classic rock. That was around three years ago, when Jorgensen, a long-time emergency medicine physician, began a fellowship in palliative care — a specialty aimed at improving quality of life for people with serious conditions, including terminal illnesses.
Shortly after he began the fellowship, he says he struggled to connect with a particular patient.
“I couldn’t draw this man out, and I felt like he was really struggling and suffering,” Jorgensen said.
He had the idea to try playing the patient some music.
He went with “The Boys Are Back in Town,” by the 1970s Irish rock group Thin Lizzy, and saw an immediate change in the patient.
“He was telling me old stories about his life. He was getting more honest and vulnerable about the health challenges he was facing,” Jorgensen said. “And it just struck me that all this time I’ve been practicing medicine, there’s such a powerful tool that is almost universal to the human experience, which is music, and I’ve never tapped into it.”
Dr. Tyler Jorgensen plays vinyl records as a form of music therapy for palliative care patients in Austin, Texas. Willie Nelson’s albums are a perennial hit.
Lorianne Willett/KUT News
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Creating new memories
Jorgensen realized records could lift the spirits of patients dealing with heavy circumstances in hospital spaces that are often aesthetically bare. And he thought vinyl would offer a more personal touch than streaming a digital track through a smartphone or speaker.
“There’s just something inherently warm about the friction of a record — the pops, the scratches,” he said. “It sort of resonates through the wooden record player, and it just feels different.”
Since then, he has built up a collection of 60 records and counting at the hospital. The most-requested album, by a landslide, is Fleetwood Mac’s Rumours from 1977. Willie is also popular, along with Etta James and John Denver. And around the holidays, the Vince Guaraldi Trio’s A Charlie Brown Christmas gets a lot of spins.
These days, it’s often a volunteer who rolls the record player from room to room after consulting nursing staff about patients and family members who are struggling and could use a visit.
Daniela Vargas, the UT Austin pre-med undergraduate who heads up the volunteer cohort, became passionate about music therapy years ago when she and her sister began playing violin for isolated patients during the COVID-19 pandemic. She said she sees similar benefits when she curates a collection of records for a patient today.
“We are usually not in the room for the entire time, so it’s a more intimate experience for the patient or family, but being able to interact with the patient in the beginning and at the end can be really transformative,” Vargas said.
Often, the palliative care patients visited by ATX-VINyL are near the end of life.
Jorgensen feels that the record player provides an interruption of the heaviness those patients and their families are experiencing. Suddenly, it’s possible to create a new, positive shared experience at a profoundly difficult time.
“Now you’re sort of looking at it together and thinking, ‘What are we going to do with this thing? Let’s play something for Mom, let’s play something for Dad.’” he said. “And you are creating a new, positive, shared experience in the setting of something that can otherwise be very sad, very heavy.”
Other patients, like Pamela Mansfield, are working painstakingly toward recovery.
She has had six neck surgeries since April, when she had a serious fall. But on the day she listened to the George Jones album, she had a small victory to celebrate: She stood up for three minutes, a record since her most recent surgery.
With the record spinning, she couldn’t help but think about the victories she’s still pursuing.
“It’s motivating,” she said. “Me and my broom could dance really well to some of this stuff.”
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