KROGER IN COURT: Judge in FTC Case ‘Expeditiously' Working on Decision
On Sept. 17, The Kroger Co. and Albertsons Cos. concluded their hearing with the Federal Trade Commission (FTC) regarding the government’s motion for a preliminary injunction to block the grocers’ proposed $24.6 billion merger. U.S. District Judge for Oregon Adrienne Nelson allowed final briefings until Sept. 27 and noted that she will work “as expeditiously as possible, because everyone is anticipating a decision.”
In August, FTC made a motion for a preliminary injunction against the proposed meg-merger of Kroger and Albertsons, seeking “extraordinary relief” to stop the companies from proceeding with their planned tie-up.
The three-week trial in Portland, Ore., featured 30-plus witnesses arguing how the U.S. grocery market should be defined today, the future impact of the merger on Kroger and Albertsons products and workforce, the 579-store divestiture plan to C&S Wholesale Grocers LLC, and the economic analysis to evaluate potential harm to consumers.
[RELATED: Kroger in Court - Closing Arguments in Lawsuit to Block Biggest Supermarket Merger]
As Kroger and Albertsons wait for a ruling from Judge Nelson, they’ve already moved into a separate case in Washington state, where Washington Attorney General Bob Ferguson and the state’s outside counsel at Munger Tolles & Olson LLP are also reviewing antitrust concerns. At the same time, Washington state is seeking to avoid the situation it found itself in a decade ago, when Albertsons bought the Safeway chain, which resulted in Haggen’s bankruptcy.
Additionally, a third merger review case in Colorado starts on Monday, Sept. 30. In February, following a year-long investigation the Colorado Attorney General Phil Weiser filed a lawsuit in Denver District Court to block the merger. According to the lawsuit, the deal would eliminate head-to-head competition between Kroger and Albertsons and consolidate an already concentrated market.
Cincinnati-based Kroger serves more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The grocer is No. 4 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
As of June 15, Albertsons Cos. operated 2,269 retail food and drug stores with 1,725 pharmacies, 403 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Boise, Idaho-based company operates stores under more than 20 banners. Albertsons is No. 9 on The PG 100.
Keene, N.H.-based C&S is No. 18 on PG’s list.
