Seven US State Officials Oppose Kroger's Acquisition Of Albertsons: Report

Officials of about seven U.S. states reportedly have written to the antitrust body with a proposal to stop Kroger Company's KR imminent $24.6 billion acquisition of grocery chain Albertsons Companies Inc ACI.

In a letter to the Federal Trade Commission (FTC) Chair Lina Khan, the secretaries of state reasoned that the acquisition would mean Kroger/Albertsons usurping nearly a quarter of the U.S. food retail market, according to Reuters.

The secretaries of state represented the states of Colorado, Arizona, Maine, Minnesota, New Mexico, Rhode Island and Vermont. All of them are elected Democrats, the report added.

"We are strongly opposed to this merger and urge you to stop this corporate consolidation that is draining Americans of their hard-earned wages and livelihoods," wrote the secretaries.

Meanwhile, a Kroger spokesperson reportedly said if the deal were to fall out, it would only further strengthen non-unionized competitors. 

The FTC is conducting a federal antitrust probe into the deal, and usually, secretaries of state have a limited role in business decisions, the report noted.

Price Action: KR shares closed lower by 1.94% at $47.02 on Wednesday.