Colorado Attorney General Phil Weiser is taking legal action to block the proposed merger of grocery store chains Kroger and Albertsons. Weiser filed a lawsuit on Wednesday, citing concerns about the potential elimination of competition and the harm it could cause to shoppers, workers, and suppliers in the state.

Weiser's move comes after Washington state's Attorney General Bob Ferguson filed a similar lawsuit in January, raising concerns about limited options for consumers and the elimination of competitive pricing resulting from the merger. The consolidation of the two supermarket giants, Kroger and Albertsons, is estimated at $24.6 billion.

Kroger currently owns popular grocery chains King Soopers and City Market, operating over 148 stores in Colorado. Meanwhile, Albertsons runs 105 Safeway and Albertsons stores in the state. Together, these two entities dominate the grocery market in Colorado.

The Federal Trade Commission (FTC) is currently reviewing the proposed merger, which was announced in October 2022. The FTC's investigation is centered around whether the combination of Kroger, the second-largest supermarket in the nation, and Albertsons, ranked fourth, would violate antitrust laws.

Executives from both Kroger and Albertsons have expressed that the merger would allow them to strengthen their stores, invest in employees, lower prices, and compete more effectively against discount grocers such as Walmart and Costco. These retailers have experienced significant growth over the past two decades.

The United Food and Commercial Workers Local 7, representing workers at Kroger and Albertsons in Colorado and Wyoming, as well as other union chapters across the country, have voiced their opposition to the merger. Weiser held listening sessions and conducted an online survey, gathering over 6,000 responses, to gauge the potential impact on shoppers, employees, and communities in Colorado.

Weiser expressed his concerns about the merger, stating, "After 19 town halls across the state, I am convinced that Coloradans think this merger between the two supermarket chains would lead to stores closing, higher prices, fewer jobs, worse customer service, and less resilient supply chains."

In addition to blocking the merger, Weiser's lawsuit also targets Kroger and Albertsons over an alleged "no-poach agreement." Weiser revealed that emails between executives indicated that Albertsons agreed not to hire any King Soopers employees or solicit any King Soopers pharmacy customers during a strike in 2022.

The outcome of the legal battle remains uncertain as the FTC continues its review process and both Kroger and Albertsons defend their merger plans. The impact on consumers, employees, and the grocery industry as a whole will depend on whether the concerns raised by Weiser and Ferguson are substantiated in court.