A proposed merger between supermarket giants Kroger and Albertsons has been halted by federal and state judges. The deal, which aimed to create the largest grocery store merger in US history, would have combined the two companies for $24.6 billion.
U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the merger in Oregon, citing concerns about reduced competition and consumer protection laws. Later on Tuesday, Judge Marshall Ferguson in Washington state issued a permanent injunction barring the deal due to similar concerns.
Kroger and Albertsons said they are disappointed with the decisions but plan to review their options. The companies could appeal, which would delay the process further.
The Federal Trade Commission (FTC) had previously sued to block the merger, arguing that it would harm consumers and workers by reducing competition. Attorneys general from several states also joined the lawsuit.
Federal regulators believed that combining Kroger and Albertsons would lead to higher grocery prices and eliminate job opportunities for employees. However, the companies claimed that the merger would preserve consumer choice and allow them to better compete with rivals.
The proposed merger included selling 579 stores to C&S Wholesale Grocers in exchange for regulatory approval. However, both judges agreed that C&S was not well-prepared to handle the additional workload.
Source: https://apnews.com/article/kroger-albertsons-merger-court-decision-41263bd9137d5046a642e7d26e98cdfc