Kroger-Albertsons merger on hold until Denver court decides on lawsuit

Updated: 1 one day ago Published: 1 one day ago

The planned merger between Kroger Co. and Albertsons Cos. is on hold until an antitrust lawsuit filed by Colorado Attorney General Phil Weiser to permanently block the deal is settled.

Denver District Judge Andrew J. Luxen issued a temporary restraining order Thursday morning, agreed to by all sides, preventing the $24.6 billion merger from being completed until five days after Weiser's lawsuit is decided. A two-week trial in the Colorado case is scheduled to begin Sept. 30.

“I am pleased that Kroger and Albertsons have agreed to put their merger plans on hold until the court rules on the state's lawsuit seeking to permanently block the grocery store merger. This is great news for shoppers, workers, farmers and other suppliers who can be assured that this mega-merger will not go into effect during harvest season and while kids are back in school,” Weiser said in a statement released after the ruling.

Weiser filed suit on Valentine's Day to block the merger of the parent companies of King Soopers, City Market and Albertsons, Colorado's leading grocery brands.

[18 Alaska Carrs Safeway stores targeted for divestiture in Kroger-Albertsons merger]

In June, Luxen denied a motion by Kroger and Albertsons Companies to dismiss Colorado's lawsuit.

The two grocers also face a lawsuit from another state, Oregon, which is scheduled to go to trial on August 26. In late February, the Federal Trade Commission filed a lawsuit to block the merger. A regulatory review is scheduled to begin on July 31. The federal agency has said the merger would eliminate competition and drive up prices for millions of Americans.

Kroger and Albertsons have said the merger, announced in October 2022, would allow them to compete with national, non-union discounters such as Walmart and Costco, as well as a number of smaller rivals such as Whole Foods, Sprouts and Trader Joe's. Kroger has said the merger would bring $1 billion in higher wages, expanded benefits, long-term job security and a strong unionized workforce.

To address concerns about reduced competition and higher prices for consumers, the companies agreed earlier this month to sell 579 stores and six distribution centers to New Hampshire-based C&S Wholesale Grocers.

Trade unions and consumer protection associations also reject the merger.

“Our members and customers alike are concerned about potential job losses, grocery and pharmacy deserts, rising food prices, food delivery costs and a lack of competition if the merger goes through. It is not a done deal and we will continue to do everything we can to prevent the merger,” UFCW Local 7 President Kim Cordova said in a statement.

Kroger is the largest supermarket operator in the USA with around 2,700 stores. Kroger owns Ralphs, Harris Teeter, Fred Meyer and King Soopers. Albertsons is the second largest supermarket chain in the country with around 2,200 stores.