Proposed Kroger and Albertsons Merger Temporarily Blocked by Colorado District Judge
A proposed merger between supermarket giants Kroger Co. and Albertsons Companies Inc., valued at $24 billion, has been temporarily blocked by a Colorado district judge. This decision places the merger plan in limbo until a trial is held later this year to determine if the merger should be permanently stopped. If approved, this merger would be the largest in the history of U.S. supermarket chains, according to the Federal Trade Commission (FTC).
The temporary injunction was granted by Judge Andrew J. Luxen of the Denver District Court on July 24, in response to a lawsuit filed by Colorado Attorney General Phil Weiser. Weiser’s lawsuit argues that the merger would harm competition by creating a monopoly, leading to increased food prices and negatively affecting consumers. The court order states that the trial, which will focus on the state’s argument against the merger and its request for permanent injunctive relief, will be held in late September.
The order also prohibits Kroger and Albertsons, along with C&S Wholesale Grocers LLC, from finalizing the merger until the court’s ruling, if it goes against the state. The FTC has also filed a lawsuit to block the merger, and that case is still ongoing.
Weiser expressed satisfaction with the court’s decision, stating that it is good news for shoppers, workers, farmers, and other suppliers. He believes that this mega-merger would have a detrimental impact on food prices, jobs, and consumer choice. The trial is scheduled to begin on September 30, and Weiser’s office is prepared to present its case against the merger.
The proposed merger between Kroger and Albertsons was first announced in late 2022. The companies aimed to establish a national footprint by combining their organizations. Under the merger agreement, Kroger would acquire all outstanding shares of Albertsons Companies Inc., amounting to a total enterprise value of approximately $24.6 billion, including the assumption of Albertsons’ debt. The combined entity would employ over 710,000 associates and operate nearly 5,000 stores across 48 states and the District of Columbia.
Both Kroger and Albertsons have not provided a comment regarding the injunction.
