A judge in Colorado has temporarily blocked the $24.6 billion merger between Kroger and Albertsons, the nation’s two largest supermarket chains. The merger was challenged by Colorado Attorney General Phil Weiser, who argued that it would harm consumers, workers, and suppliers. The U.S. Federal Trade Commission and Washington Attorney General Bob Ferguson also took legal action against the merger.
Denver District Court Judge Andrew Luxen granted Weiser’s request for a preliminary injunction against the merger, preventing the deal from going through before a ruling is issued in the case. The companies agreed to the injunction to conserve resources, and the case will proceed to trial in the fall. Weiser expressed satisfaction with the temporary halt to the merger, stating that it was good news for shoppers, workers, farmers, and suppliers.
The proposed divestiture plan by Kroger and Albertsons, which aimed to sell 579 locations to alleviate antitrust concerns, faced criticism from labor unions and consumer advocates. They argued that the plan, which involved selling stores to C&S Wholesale Grocers, would not create effective competition to the merged entity. Weiser’s investigation into the merger also revealed alleged collusion between Kroger and Albertsons during a strike in January 2022.
The case is scheduled to go to trial on September 30. Weiser emphasized that his office will continue to pursue the case and argue that the merger would eliminate competition, impact food prices, jobs, and consumer choice. The outcome of the trial will have significant implications for the grocery industry in Colorado and beyond.
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