The merger of Albertsons Companies Inc ACI and Kroger Co KR hit a roadblock with several customers and unions opposing the deal.
On Monday, the International Brotherhood of Teamsters rejected the merger, and the plea is currently under review at the Federal Trade Commission.
The Teamsters, representing over 22,000 members in both companies' stores and facilities in the U.S., opposed the merger after discussing employees' fundamental interests' protection with the companies for months.
Also, last week, customers of both grocery chains filed lawsuits to stop the merger as it may lead to fewer grocery stores in the community, resulting in price increases and lower accessibility to food for everyone, as per the report.
Last month, United Food and Commercial Workers International Union (UFCW), the largest private sector union in the U.S., and its 1.3 million members officially rejected the $25 billion merger deal.
UFCW International President Marc Perrone said, "Given the lack of transparency, and the impact a merger between two of the largest supermarket companies could have on essential workers – and the communities and customers they serve – the UFCW stands united in its opposition to the proposed Kroger and Albertsons merger."
In October 2022, Kroger and Albertsons announced the merger to establish a national footprint.
Price Action: KR shares are trading higher by 0.80% at $46.75, while ACI shares are trading lower by 0.02% at $20.95 on the last check Tuesday.
Photo via Wikimedia Commons
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