Judge Temporarily Halts Merger of Kroger and Albertsons Grocery Stores
Judge Temporarily Halts Merger of Kroger and Albertsons Grocery Stores

By Chase Smith

A Colorado district judge temporarily blocked a proposed merger between Kroger Co. and Albertsons Companies Inc. this week, placing the companies’ $24 billion merger plan in limbo pending a trial later this year that seeks to permanently stop the merger.

The merger would be the largest merger of supermarket chains in U.S. history, according to the Federal Trade Commission (FTC).

Judge Andrew J. Luxen of the Denver District Court granted a temporary injunction on July 24, as a response to a lawsuit filed by Colorado Attorney General Phil Weiser.

Mr. Weiser filed suit earlier this year seeking to permanently block the merger on the grounds that it would harm competition by creating a monopoly that would negatively affect consumers by driving up the prices of food.

The court order issued this week stipulates that a trial that will center on the merits of the state’s argument against the merger and also address the state’s request for permanent injunctive relief will be held concurrently in late September.

The order specifies that Kroger and Albertsons, along with C&S Wholesale Grocers LLC, are prohibited from consummating the proposed transaction until the fifth business day following the court’s ruling, if the court rules against the state.

The FTC also sued to block the merger earlier this year, and that case is still playing out concurrently.

Mr. Weiser expressed his satisfaction with the court’s decision in a statement released shortly after the order was issued.

“I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state’s lawsuit to permanently block the grocery merger,” Mr. Weiser said in a statement emailed to The Epoch Times. “This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school. The trial is set to begin on Sept. 30, and my office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice.”

The proposed merger between Kroger and Albertsons was first announced in late 2022.

According to a joint statement from the companies at the time, the merger agreement aims to combine the two organizations to establish a national footprint.

Under the terms of the merger agreement, Kroger would acquire all outstanding shares of Albertsons Companies Inc., implying a total enterprise value of approximately $24.6 billion, including the assumption of approximately $4.7 billion of Albertsons’ debt, according to the company statement at the time.

Together, the combined entity would employ more than 710,000 associates and operate nearly 5,000 stores across 48 contiguous states and the District of Columbia, according to the statement.

Kroger and Albertsons did not respond to a request from The Epoch Times for comment on the injunction.


Discover more from USNN World News

Subscribe to get the latest posts sent to your email.

USNN World News Corporation (USNN) USNN World News is a media company consisting of a series of sites specializing in the collection, publication and distribution of public opinion information, local,...