Toulouse Oliver and Torrez’s meddling could hike your grocery bill — Here’s how

The high-profile merger between supermarket giants Kroger and Albertsons hit significant roadblocks on Tuesday, with rulings from judges in two states halting the $24.6 billion deal. Critics are now pointing fingers at New Mexico Secretary of State Maggie Toulouse Oliver, New Mexico Attorney General Raúl Torrez, and other leftist officials, accusing both of overstepping their authority and jeopardizing a merger that could have provided much-needed relief to strained grocery prices and improved competition in the retail sector.

U.S. District Court Judge Adrienne Nelson issued a preliminary injunction against the merger following a three-week hearing in Portland, Oregon. Later, on the same day, Judge Marshall Ferguson in Seattle handed down a permanent injunction, concluding that the merger would reduce competition in Washington and violate state consumer protection laws.

Kroger and Albertsons have expressed disappointment with the rulings and are evaluating their next steps, which could include appeals. The companies argue that the merger is essential to better compete with retail behemoths like Walmart, Costco, and Amazon. Without it, store closures, layoffs, and potential market exits may be unavoidable. “This merger would enhance competition, not reduce it, by giving us the scale to lower prices and improve service,” Kroger and Albertsons stated in response to the rulings.

Toulouse Oliver’s Role in the Merger Opposition

New Mexico Secretary of State Maggie Toulouse Oliver’s involvement in the opposition to the merger has drawn sharp criticism from industry leaders and consumer advocates alike. Her decision to join a coalition of attorneys general from Arizona, California, Illinois, Maryland, Nevada, New Mexico (Torrez), Oregon, Wyoming, and the District of Columbia in supporting the Federal Trade Commission’s (FTC) effort to block the merger is being labeled as unnecessary interference in private enterprise.

In a letter signed by Toulouse Oliver and other officials, they claimed, “The proposed merger poses a significant threat to competition and could lead to higher prices, fewer choices, and diminished service for consumers in our states. We urge the FTC to take swift action to protect the public interest.” However, opponents argue that Toulouse Oliver’s support of the letter is a politically driven attempt to bolster her regulatory influence at the expense of consumers and the broader grocery market.

Impact on Grocery Prices and Consumer Choice

According to Kroger and Albertsons, Toulouse Oliver’s actions, along with those of other state officials, risk worsening an already precarious grocery market. They argue that blocking the merger denies consumers access to the benefits of increased competition against larger players like Walmart and Amazon. “This merger is essential to maintaining competitive pressure on the largest players in the retail grocery space,” the companies stated. They further emphasized that the combined resources would allow for $1 billion in price reductions and $1 billion in higher wages for grocery workers.

Industry leaders warn that Toulouse Oliver’s interference will only drive prices higher. “Preventing this merger leaves smaller grocers unable to compete with retail giants, and it’s consumers who will bear the cost,” one industry expert noted. Kroger and Albertsons have pledged significant price cuts and investments in employee wages, but these benefits are now in jeopardy due to the regulatory roadblocks led by Toulouse Oliver and her allies.

Legal and Market Implications

The FTC’s lawsuit to block the merger received support from multiple states and labor unions, with arguments centered on reduced competition, higher prices, and potential harm to workers. However, Kroger and Albertsons contend that these claims are flawed and counterproductive. They pledged to sell 579 stores to C&S Wholesale Grocers to avoid anti-competitive overlap. But Judge Ferguson dismissed this solution, stating, “Wholesaler C&S, with its limited retail experience and infrastructure, will not be able to replicate the ferocity of that competition or compete effectively in Washington against the colossus that is a merged Kroger and Albertsons.”

An Albertsons grocery store in Idaho Falls, Idaho. Tony Webster via Wiki Commons.

Despite this, supporters of the merger argue that divesting stores to smaller retailers like C&S creates a more diverse market, which is exactly what antitrust laws are supposed to encourage. The injunctions represent significant setbacks for Kroger and Albertsons, as further litigation could take months or years. Meanwhile, critics argue that Toulouse Oliver’s overreach is actively working against consumer interests.

Secretary of State Maggie Toulouse Oliver’s opposition to the Kroger-Albertsons merger has drawn widespread criticism for being an unnecessary act of meddling that could leave consumers facing higher grocery prices and fewer options. Kroger and Albertsons argue that the merger is essential for competing against retail giants like Walmart and Amazon. 

With the future of the merger hanging in the balance, consumers and industry leaders alike are calling for regulatory restraint and urging officials like Toulouse Oliver to reconsider the broader economic impact of their decisions.

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10 thoughts on “Toulouse Oliver and Torrez’s meddling could hike your grocery bill — Here’s how”

  1. Clare Alexander May

    There can be only one solution. File bankruptcy. Shut the doors to every one of these stores. Let the fresh food rot on the shelves, lock the employees out and force them on unemployment.

    Lets see how the baby queen sitting on the tolite in Santa Fe reacts to her bullsh*t meddling.

    Put the blame right where it needs to be put. On those pushing this agenda of absolute control. Sociability like her dont want competition… just like the New Mexico Gambling Industry. “Limited” is what the communists like her and the entire DNC desire.

    It wont hurt me becasue there are no stores like this here. Wallymart made sure of that decades ago.

  2. How about breaking up amazon & walmart? Can costco be counted in their list, it’s a membership store? Amazon is certainly a monopoly – their “marketplace” is a sham clearing house for china corp. Wallyworld is just the same, a dumping ground for chinese garbage.

    I don’t like the troll sticking her grubby fingers where they don’t belong— this seems more like preventing non chinese companies from competing, when the focus should be on breaking up amazon.

  3. Although I do not agree with these leftists in general, I do agree with this move. This merger can cause, over time, an increase in prices as dictated by removing the competition model resulting in a monopoly.

  4. The Democrats here are in i a rude awakening in January a childhood friend of works ICE and I told him I want to part in the rounding up illegals and hope MLG and then rest go to jail

    1. I have been wondering the same thing. Her job is to oversee elections. What authority does her office hold to regulate mergers?

  5. Go to each of the companies website and review their Financials; you’ll see that neither company is in bad shape. Shareholders just want more money. Prices would not decrease for us, they would stay the same while their profits would increase. Pretty easy to calculate.

  6. Don’t forget that the Big Gal MTO was attempting to run for a Senate Seat, but I’m guessing MLG told her to remain as SOS to possibly assure election results….

    So my guess is that she is working to position herself…

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