Kroger, Albertsons Merger Halted Temporarily
The proposed merger between grocery giants The Kroger Co. and Albertsons Cos. is on hold, at least for now.
On Thursday, July 25, Denver District Court Judge Andrew J. Luxen temporarily halted the proposed $24.6 billion merger, granting a preliminary injunction while also cancelling an August 12 hearing on the matter. That hearing will be replaced by a two-week trial scheduled to start September 30.
A Kroger spokesperson told Progressive Grocer, Store Brands’ sister publication, the decision is welcome news since it eliminates the need for a preliminary injunction hearing.
“We look forward to defending in court how the combination of Kroger and Albertsons will provide meaningful, measurable benefits, including lower prices and more choices for families across the country and more opportunities for stable, well-paying union jobs,” the spokesperson said.
The decision by Judge Luxen follows the lawsuit filed in February by Colorado Attorney General Phil Weiser in an effort to block the merger. In the lawsuit, Weiser claims the merger would eliminate head-to-head competition between Kroger and Albertsons and consolidate an already concentrated market. Kroger’s effort to have the lawsuit dismissed was denied in early July.
Weiser said he was “pleased” Kroger and Albertsons have put a halt to its merger plans, saying its great news for shoppers, workers, farmers and other suppliers.
