(WBBM NEWSRADIO) — A hearing in a west coast courtroom could determine the fate of a proposed $20 billion merger between grocery giants Kroger and Albertsons. If the deal goes through, it will have a big impact on shoppers in Chicago.
The three-week hearing in a federal court in Oregon will determine whether a judge agrees with the Federal Trade Commission's (FTC) request to place a preliminary injunction, which would essentially end the merger between Kroger and Albertson.
Kroger is the parent company of Mariano's, and Albertson's is the parent company of Jewel-Osco.
The FTC has argued that the merger will lead to reduced competition and higher prices.
Burt Flickinger, managing director of the retail consulting firm Strategic Resource Group, said the merger should go through, though, because the companies are competing with Walmart and Costco.
“The FTC, in my experience going back decades, doesn’t know retail reality,” he said. “They’re lost in a 20th century time trap that’s got nothing to do with today.”
Flickinger didn’t buy the FTC’s argument that the merger would hurt customers.
“This is the best thing for labor; it’s the best thing for consumers, the best thing workers [and] the best thing for farmers,” he said.
Thirty-five Jewel-Osco and Mariano's locations — along with the mariano's name — would be spun off to C&S Wholesale Grocers if the merger is allowed to proceed.
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