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A state's experience with grocery chain mergers spurs a fight to stop Albertsons' deal with Kroger

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A state's experience with grocery chain mergers spurs a fight to stop Albertsons' deal with Kroger

Lawyers for Washington state will have past grocery chain mergers – and their negative consequences – in mind when they go to court to block a proposed merger between Albertsons and Kroger.

The case is one of three challenging the $24.6 billion deal, which was announced nearly two years ago. The Federal Trade Commission is currently fighting the merger in federal court in Oregon, where closing arguments are expected Tuesday. Colorado has also sued to block the merger.

But if the merger goes through, Washington residents would feel the impact more than the people of any other state. Albertsons and Kroger own more than 300 grocery stores in the state and control more than half of grocery sales there.

Under a plan to ease regulators’ concerns, Kroger and Albertsons would sell 579 overlapping stores, 124 of them in Washington, if the merger goes through. That’s the highest number among the 19 states with stores on the list. The state attorney general’s office says the proposed buyer, C&S Wholesale Grocers, has little experience running stores or pharmacies.

Washington seeks to avoid the situation it found itself in a decade ago, when Albertsons bought the Safeway chain. To satisfy regulators concerned about that deal’s potential impact on supermarket competition and consumers, Albertsons sold 146 stores to Haggen, a small grocery chain based in Bellingham, Washington.

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But Haggen struggled with the expansion. Within six months, it had closed 127 stores — including 14 in Washington — and laid off thousands of workers. Haggen sold its remaining stores to Albertsons in 2016. Now, 10 Haggen stores in Washington are on the list to be sold if the merger happens.

“It’s pretty terrifying,” said Tina McKim, a founding member of Birchwood Food Desert Fighters, a group that sprang up in 2016 after Albertsons closed a store in Bellingham’s Birchwood neighborhood.

Washington Attorney General Bob Ferguson, a Democrat who is running for governor, wants to block the merger not just in the state but nationwide. In its complaint, filed in King County Superior Court in Seattle, Washington says eliminating the “robust competition” that exists between Albertsons and Kroger would lead to higher prices, lower quality and, most likely, store closures.

Albertsons and Kroger say the merger would help them better compete with growing rivals like Walmart and Costco. They are trying to get the case dismissed, arguing a state court isn’t the proper venue to consider a nationwide ban.

“Under our federalist system, Washington cannot wield its antitrust law to dictate merger policy for the rest of the country,” Albertsons and Kroger said in a court filing.

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Brad Weber, a Dallas-based partner with the law firm Locke Lord who specializes in antitrust issues, said the Superior Court judge could decide to halt the merger nationwide or limit his ruling to Washington. Judge Marshall Ferguson might also order the companies to make changes to their plans to divest stores to preserve competition.

Ferguson may also decide to delay the case until there’s a ruling from the U.S. District Court in Oregon. Weber said. In that case, the Federal Trade Commission has asked a judge to temporarily block the merger until it is considered by an in-house judge at the FTC.

Albertsons and Kroger insist that their plan, including the sale of stores to C&S, will lower grocery prices and preserve competition. But Washington residents like McKim remain skeptical.

In 2016, Albertsons acquired a Haggen supermarket and then promptly closed an Albertsons store about a mile away in Birchwood. When it sold its former store two years later, Albertsons included a restriction: for the next 20 years, no grocery store could open in the Birchwood shopping plaza.

It was a huge blow to the community, McKim said. For 35 years, the Birchwood store had served older adults, students, people with disabilities and lower-income residents who suddenly had no easy access to fresh food.

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“We were all really shocked by that. How is it possible to deny food access to a neighborhood?” McKim said. “It made it really hard for anyone without a car to be able to go to another grocery store.”

McKim’s group tries to fill the void by collecting food donations and bringing in produce from local farms, but “it’s nowhere near the level of access people need,” she said.

This summer, after an investigation by Washington’s attorney general, Albertsons removed the restriction on the shopping plaza. A Big Lots that moved into the former grocery store is closing soon, McKim said, and she hopes the space will attract another supermarket. But even if it does, the community may never get back the unionized jobs it lost when Albertsons shut its doors, she said.

McKim said her area does have a Walmart, but it’s even further away from Birchwood than the Albertsons-run Haggen store, which is on the list of stores that would be sold to C&S. She’s also not convinced Kroger and Albertsons need to merge to compete with Walmart.

“This city is growing so quickly, the need for food is absolutely critical everywhere,” McKim said. “When you see other stores succeed, it’s because they curate to the neighborhood’s needs.”

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Video: I.C.C. Issues Arrest Warrant for Netanyahu Over War in Gaza

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Video: I.C.C. Issues Arrest Warrant for Netanyahu Over War in Gaza

The International Criminal Court’s arrest warrants for Israel’s Prime Minister Benjamin Netanyahu and his former defense minister, Yoav Gallant, were issued for war crimes and crimes against humanity in Gaza. The court also sought to arrest Hamas’s military chief, Muhammad Deif, for crimes against humanity.

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US citizen among 4 dead in Laos after suspected alcohol poisoning

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US citizen among 4 dead in Laos after suspected alcohol poisoning

An American, two Danes and one Australian tourist died after drinking tainted alcohol in Laos following reports that several people had been sickened in a town popular with backpackers.

The only victim’s identity publicly released so far is 19-year-old Bianca Jones of Australia.

Australian Prime Minister Anthony Albanese told Parliament on Thursday that Jones had died after being evacuated from Vang Vieng, Laos, for treatment in a Thai hospital. Her friend, also 19, remains hospitalized in neighboring Thailand.

“This is every parent’s very worst fear and a nightmare that no one should have to endure,” Albanese said, according to The Associated Press. “We also take this moment to say that we’re thinking of Bianca’s friend Holly Bowles, who is fighting for her life.”

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A notice displayed at the bar of Nana Backpack hostel in Vang Vieng, Laos, Tuesday, Nov. 19, 2024. (AP Photo/Anupam Nath)

Shaun Bowles told reporters outside Bangkok Hospital on Wednesday that his daughter remained in critical condition and on life support.

“We just like to thank everyone from back home for all of the support and love that we’re receiving,” he said. “But we’d also like the people to appreciate right now, we just need privacy so we can spend as much time as we can with Holly.”

Australian media said Jones was the fourth foreign tourist to die after consuming the contaminated alcohol.

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Man play pool in Laos

A man plays pool at Nana Backpack hostel in Vang Vieng, Laos, Tuesday, Nov. 19, 2024. (AP Photo/Anupam Nath)

“The physician who examined her said the cause of death was a methanol poisoning, from fake liquor,” Phattanawong Chanphon, a police official in the Thai city, told Reuters. “The amount of methanol in her body was high, leading to swelling of the brain.”

Counterfeit liquor is a problem in Laos, with the governments of Australia and Britain warning citizens to be cautious when having drinks there.

Methanol is a toxic alcohol that is used industrially as a solvent, pesticide and alternative fuel source, according to the U.S. Centers for Disease Control and Prevention.

Laos bar November 2024

Foreign tourists have a drink at a nightclub at Nana Backpack hostel in Vang Vieng, Laos, Tuesday, Nov. 19, 2024. (AP Photo/Anupam Nath)

The U.S. Department of State did not respond to a Fox News Digital inquiry, but told the AP that local authorities were investigating the case and were responsible for providing any details. The State Department noted that the U.S. was providing consular assistance.

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“At this time I would say to parents, to young people, please have a conversation about risks, please inform yourselves, please let’s work together to ensure this tragedy doesn’t happen again,” Australian Foreign Minister Penny Wong said after receiving news of Jones’ death.

The Associated Press and Reuters contributed to this request. 

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UK imposes sanctions on Isabel dos Santos, Ukrainian oligarch Firtash

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UK imposes sanctions on Isabel dos Santos, Ukrainian oligarch Firtash

The measures are a part of the Labour government tightening Britain’s anti-corruption sanctions regime.

The United Kingdom has barred Angolan billionaire Isabel dos Santos and Ukrainian oligarch Dmytro Firtash and frozen their UK assets, the government announced, in what it said was part of a new crackdown on “dirty money”.

The measures on Thursday were the first step in tightening Britain’s anti-corruption sanctions regime as promised in July’s election, the Labour government said.

“These unscrupulous individuals selfishly deprive their fellow citizens of much-needed funding for education, healthcare and infrastructure – for their own enrichment,” Foreign Secretary David Lammy said in a statement.

Dos Santos, whose father Jose Eduardo dos Santos served as Angola’s president for 38 years until 2017, is Africa’s first female billionaire and has faced corruption accusations in Angola and elsewhere for years. She denies the allegations and says she is the target of a long-running political vendetta.

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She was sanctioned by the United States in 2021 for “involvement in significant corruption” and is barred from entering the country.

Britain said dos Santos abused her positions at Angolan state oil firm Sonangol and telecoms company Unitel to embezzle at least 350 million pounds ($440m).

Dos Santos lost an appeal to overturn an order freezing up to 580 million pounds of her assets in September as part of a lawsuit at London’s High Court brought by Unitel. Global police agency Interpol has issued a red notice for her.

In a statement cited by the Reuters news agency, dos Santos said that the British sanctions were “incorrect and unjustified”.

“I was not given the opportunity to defend myself against these allegations,” she said. “I intend to appeal and I hope that the United Kingdom will give me the opportunity to present my evidence.”

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Dmytro Firtash, one of Ukraine’s most influential oligarchs, at a trial in Vienna, Austria [File: Samuel Kubani/AFP]

Firtash is wanted by Ukrainian and US authorities on suspicion of embezzling nearly $500m involving Ukraine’s gas transit system. He says the charges are without legal foundation.

He is currently in Austria fighting extradition to the US.

In June 2021, Ukrainian President Volodymyr Zelenskyy signed a decree imposing sanctions on Firtash, including the freezing of his assets and withdrawal of licences from his companies, after accusing him of selling titanium products to Russian military companies.

Britain said Firtash had extracted “hundreds of millions of pounds from Ukraine through corruption”, and hidden tens of millions of pounds of ill-gotten gains in the UK property market alone.

Britain also sanctioned his wife Lada Firtash, who it said held UK assets on his behalf including the site of the old Brompton Road rail station of the London Underground.

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Latvian businessman and politician Aivars Lembergs, who was put on a US sanctions list in 2019 for alleged corruption, was also sanctioned, as was his daughter Liga Lemberga. The British government said Lembergs had “abused his political position to commit bribery and launder money.”

Lammy said the penalties were the start of a crackdown.

“I committed to taking on kleptocrats and the dirty money that empowers them when I became foreign secretary, and these sanctions mark the first step in delivering this ambition,” he said.

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