A federal judge has blocked the proposed Kroger/Albertsons merger.
The proposed Kroger/Albertsons merger has been blocked by a federal judge who agreed with the Federal Trade Commission’s view that the marriage of the two grocery giants would have a negative impact on competition in the traditional supermarket channel.
According to the Wall St. Journal, U.S District Court Judge Adrienne Nelson said in her ruling, “Evidence shows that defendants engage in substantial head-to-head competition and the proposed merger would remove that competition.”
A spokesperson for the Federal Trade Commission told The Journal that the ruling “protects competition in the grocery market, which will prevent prices from rising even more.”
Neither Kroger or Albertsons immediately commented on the decision.
Attorneys for the two grocery companies previously said they would likely abandon the deal if the ruling went against the merger.
The decision likely puts an end to a saga that began in October of 2022 when the proposed merger was announced. The merger would have had Kroger acquiring all outstanding shares of Albertsons in a deal valued at approximately $24.6 billion, which includes the assumption of approximately $4.7 billion of Albertsons debt.
The deal was augmented over time, and would eventually bring in C&S Wholesale Grocers, which said it would acquire more than 400 Kroger and Albertsons locations in 17 states and Washington, D.C. contingent on the merger’s approval. That deal would have also included eight distribution centers, two offices, and five private label brands.