Business acquisitions are common in California and other states in the nation. These mergers may benefit both companies, but they also often result in pushback from employees, shareholders, or even the states in which one or both companies operate. When challenged, a business may face a lengthy time in court, which can be frustrating and costly. Kroger has plans to merge with Albertsons, but the state of California may file a lawsuit to prevent the deal from happening.
Reasons behind the possible lawsuit
Kroger, which is based in Cincinnati, is attempting to merge with Albertsons, an Idaho-based grocery chain. Both Kroger and Albertsons operate stores in several states under various names. The acquisition, which would cost $24.6 billion, is supposed to help both grocery retailers expand their online offerings. The California attorney general, however, claims that if the deal goes through, employees of both companies, along with consumers, could suffer.
If California decides to proceed with a lawsuit against the merger, they could sue alone or join with the FTC. A Kroger spokesperson claims the merger could bring lower prices to consumers and provide more communities with grocery store options that aren’t affiliated with the well-known big box stores. If the lawsuit is filed, Kroger will be forced to defend itself against the allegations and provide evidence of how the merger would be beneficial to consumers.
Legal help in business litigation
Large companies face many challenges, some of which end up in court. When a business is facing a lawsuit related to a merger or other matter, it’s important to work with an attorney who understands California business laws. This type of lawsuit can be costly to fight so it’s important for a company to have a trustworthy legal team by its side.