Kroger-Albertsons supermarket merger could impact 2024 election results in Nevada and Arizona as President Biden's administration sues to block deal amid pressure to bring down food prices

US antitrust officials filed suit Monday to block the proposed merger of Kroger and Albertsons, arguing the deal would harm consumers, a decision that could impact the results of the 2024 election in two battleground states.

The Federal Trade Commission announced it is seeking a preliminary injunction that will block Kroger's proposed $24.6billion acquisition of Albertsons.

The commission said the potential merger would yield 'higher prices for groceries and other essential household items for millions of Americans.'

Henry Liu, the FTC's director of the competition bureau said: 'This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years.

'Kroger's acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today.'

The FTC filed suit against a proposed $26billion merger between Kroger and Albertsons

The Biden administration is arguing that the acquisition (by Kroger of Albertsons) would drive up prices, hurting consumers

The deal was announced back in October of 2022, when the companies presented the idea as a way to have a shot at competing with giant retailers like Walmart and Amazon.

Kroger rejected the commission's arguments, saying that as a business they've had a long history of cutting costs for consumers following acquisitions.

The company has pledged to spend $500million lowering prices after the completion of the merger, as well as an additional $1.3billion upgrading Albertsons stores.

Kroger said in response to the FTC's comments: 'Contrary to the FTC's statements, blocking Kroger's merger with Albertsons Companies will actually harm the very people the FTC purports to serve: America's consumers and workers.'

Kroger added that the FTC's actions would be damaging to workers in that they would give a boost to 'larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry.'

On the other hand, the FTC argued that a 'combined Kroger/Albertsons. .. would gain increased leverage over workers and their unions - to the detriment of workers.'

In its action, the FTC was joined by eight states and the District of Columbia.

The government drama, however, has hardly impacted the share price of either grocer.

The suit, however, may carry weight outside of just how it impacts American grocery store shoppers. 

In the time since Joe Biden took office, food prices have risen by 25 percent. He is hoping that opposing the deal will convince Americans he is attempting to protect them from even higher prices

Both Kroger and Albertsons have dozens and dozens of stores in the Western parts of the country - including Nevada and Arizona - two must-win swing states that will be up for grabs in November.

The Biden administration is reportedly hoping to block the merger and advertise the move as a victory for the Democrats against rising grocery prices - one of the foremost complaints of Americans weathering the current economy.

Both Arizona and Nevada joined the FTC's suit in opposition to the merger. Both states have Democratic attorneys general. 

'Biden is committed to lowering grocery costs for families using every tool at his disposal,' said Biden economic adviser Jon Donenberg.

Grocery bills in Nevada are the second-highest in the nation, with Arizona not far behind. Biden won both states in 2020 by slim margins and is looking to repeat those results this time around.

In the time since Joe Biden took office, food prices have risen by 25 percent. Grocery bills are one of the primary concerns of everyday Americans who will cast their vote with kitchen table issues in mind.