Kroger-Albertsons Merger Halted as Colorado Judge Orders September Trial
Denver District Court Judge Andrew J. Luxen has temporarily halted the proposed $24.6 billion merger between The Kroger Co. and Albertsons Cos. During a hearing on July 25, Luxen granted a preliminary injunction delaying the merger while also canceling an Aug. 12 hearing on the matter. Both grocers have agreed to the delay.
"Defendants shall take any and all necessary steps to prevent any of their officers, directors, domestic or foreign agents, divisions, subsidiaries, affiliates, partnerships, or joint ventures from consummating, directly or indirectly, any such transaction," stated the court ruling.
In place of the hearing will be a two-week trial set to start on Sept. 30. A Kroger spokesperson told Progressive Grocer that 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,” said the spokesperson.
In February, Colorado Attorney General Phil Weiser filed a lawsuit in Denver District Court to block the merger. According to the lawsuit, the merger would eliminate head-to-head competition between Kroger and Albertsons and consolidate an already concentrated market.
Earlier this month, a bid by Kroger to dismiss that lawsuit was denied. Kroger operates more than 140 King Soopers and City Market stores, while Albertsons runs 100-plus Safeway and Albertsons stores in the state.
“I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state’s lawsuit to permanently block the grocery merger," Weiser said in a statement regarding the latest development in the proposed merger. "This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school."
A hearing date of Aug. 26 was set by Judge Adrienne Nelson of the U.S. District Court for the District of Oregon regarding the FTC’s request for a preliminary injunction against the merger. The August hearing date will come exactly six months after the FTC filed suit to halt the merger and divestiture plan, claiming that the move "falls far short of mitigating the lost competition between Kroger and Albertsons" and would increase grocery prices for millions of Americans.
On July 9, Kroger released a list of the stores, distribution centers and plant locations that it plans to divest to C&S Wholesale Grocers should the merger be completed. Some 579 Kroger and Albertsons stores, as well as other assets, will be divested as part of the plan, and Kroger has begun the process of informing associates at those locations of the move.
Additionally, it was revealed that Albertsons EVP and COO Susan Morris would lead the retail division of C&S Wholesale Grocers if the merger goes through.
Cincinnati-based Kroger is No. 4 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. View company website. Boise, Idaho-based Albertsons is No. 9 on The PG 100. View company website. PG also named Kroger and Albertsons among the Retailers of the Century. Keene, N.H.-based C&S is No. 18 on PG’s list.
