Kroger-Albertsons merger on hold, for now
Two grocery giants will temporarily halt their multibillion-dollar merger plans while state and federal agencies push lawsuits to block it, according to action issued Wednesday in a state lawsuit out of Colorado.
Kroger and Albertsons agreed to a temproary injunction in a lawsuit filed by Colorado Attorney General Phil Weiser. He sued to block the merger in February. Around the same time, the Federal Trade Commission — joined by eight other states, including Nevada, and Washington, D.C. — filed a similar federal lawsuit in the District of Oregon. The attorneys general and FTC argue the transaction would reduce competition and harm consumers, especially following an era of high food inflation.
A federal judge will hear the FTC’s request for an injunction on Aug. 26. They could issue an order in that case that affects the deal before the conclusion of Colorado’s state trial set to begin on Sept. 30. A spokesperson for Nevada Attorney General Aaron Ford said the Colorado court’s decision does not affect the slated events in the federal court case.
“The Nevada Attorney General’s Office is not a party to the litigation against Kroger and Albertsons filed in the state of Colorado,” the office said in a statement. “Our office is joined with the FTC and several other states in litigation filed in federal court. Our lawsuit is ongoing and have no further comment at this time.”
The $24.6 billion proposed deal between Smith’s parent company and Albertsons was first proposed in October 2022, and got immediate pushback from some politicians. The grocers say the deal will make them more competitive against discount retailers and massive retailers like Amazon and Walmart. The companies proposed selling more than 575 stores nationwide — including 16 in Nevada — to smaller grocer, C&S Wholesale Grocers, to assuage some regulator concerns.
“Today’s decision is welcome news as it eliminates the need for a preliminary injunction hearing in Colorado that was previously scheduled to begin August 12,” a Kroger spokesperson said in a statement. “The hearing on the state’s request for a permanent injunction will go forward as scheduled on September 30. 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.”
Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.
