>> Sade: NOW THE TRIAL THAT COULD DECIDE WHETHER A
SUPERMARKET MEGAMERGER WILL HAPPEN.
KROGER AND ALBERTSON'S ARE HOPING TO JOIN FORCES BUT
THERE'S PLENTY OF OPPOSITION TO THE $25 BILLION MERGER.
EVA PILGRIM IS HERE WITH WHAT'S AT STAKE FOR THE TWO COMPANIES
AS WELL AS FOR SHOPPERS AND WORKERS.
GOOD MORNING, EVA. >> GOOD MORNING, SADE.
THE KROGER AND ALBERTSON'S DEAL WOULD BE THE LARGEST MERGER EVER
BUT THE FEDS ARE TRYING TO BLOCK IT SAYING IT'S BACK FOR
SHOPPERS. THE FTC, STATES OF COLORADO AND
WASHINGTON, ALL FILING A LAWSUIT TRYING TO STOP THE NEARLY $25
BILLION MERGER. THE FTC SAID IT WOULD ELIMINATE
COMPETITION AND RAISE GROCERY PRICES FOR MILLIONS OF AMERICANS
ALREADY STRUGGLING WITH INFLATION AND HIGH PRICES,
LEARNING THE QUALITY OF YOUR GROCERIES COULD SUFFER AS WELL.
THE AGENCY ALSO CLAIMS THE MERGER WOULD MAKE IT MORE
DIFFICULT FOR WORKERS TO EARN HIGHER WAGES AND MAINTAIN BETTER
BENEFITS. BUT THE GROCERY CHAINS ARE
SWINGING BACK HARD AGAINST THE LAWSUIT SAYING THE MERGER IS
NECESSARY TO STAY COMPETITIVE WITH RETAIL GIANTS BIBBING
COSTCO AND WAL-MART SAYING THE DEAL WOULD ENHANCE JOB SECURITY
FOR WORKERS AND WOULD LOWER PRICES.
A FEDERAL JUDGE IN OREGON WILL LOOK AT THIS CASE AND DECIDE
WHETHER TO DELAY THE MERGER. THE TRIAL IS EXPECTED TO LAST
ABOUT THREE WEEKS. NO MATTER WHAT HAPPENS, WE
EXPECT BOTH SIDES WILL APPEAL, SADE.
>> Sade: I'M SURE THEY WILL. EVA, WE KNOW THESE CHAINS OWN
OTHER GROCERY STORE CHAINS. IF THE DEAL GOES THROUGH HOW
LIKELY IS THAT IT PEOPLE'S LOCAL GROCERY STORE WILL CLOSE?
>> THAT'S THE THING WE'RE ALL WORRIED ABOUT.
KROGER AND ALBERTSON'S IS MORE THAN JUST KROGER AND
ALBERTSON'S. THEY OWN RALPH'S, SMITH'S.
ALBERTSON'S INCLUDE SHAW AND SAFEWAY.
THEY SAY THERE ISN'T MUCH OVERLAP SO SHUTTING DOWN
LOCATIONS IS UNLIKLEY.