Washington state sues to block proposed merger of Kroger and Albertsons grocery chains

Washington state has sued to block the proposed merger of Kroger and Albertsons, two of the nation's largest grocery chains

SEATTLE -- Washington state Attorney General Bob Ferguson on Monday sued to block the proposed merger of Kroger and Albertsons, two of the nation's largest grocery chains.

In the suit filed in King County Superior Court, Ferguson argued that the $25-billion deal would harm consumers and raise prices, The Seattle Times reported. Kroger and Albertsons have more than 300 locations in the state and account for more than half of its grocery sales, according to the suit.

“This merger is bad for Washington shoppers and workers,” Ferguson said in a news release Monday. “Shoppers will have fewer choices and less competition, and, without a competitive marketplace, they will pay higher prices at the grocery store.”

Kroger, which owns QFC and Fred Meyer and is based in Cincinnati, is seeking to acquire Albertsons, which owns Safeway and Haggen and is based in Boise, Idaho.

In a statement Monday, Kroger said it was pushing back its timeline for closing the deal due to ongoing dialogue with regulators, including state attorneys general and the Federal Trade Commission. It now anticipates the closure may occur in the first half of its fiscal year, which ends in mid-August.