Kroger-Albertsons merger halted temporarily
ANCHORAGE, Alaska (KTUU) - A planned $24.6 billion merger between Kroger and Albertsons has been temporarily put on hold, as the state of Colorado looks to block the merger via lawsuit.
A district court in Denver ordered a preliminary injunction against The Kroger Co. (parent company of Fred Meyer), Albertsons Companies, Inc. (parent company of Carrs-Safeway) and C&S Wholesale Grocers, LLC, halting the merger until the trial commences on Sept. 30.
Colorado Attorney General Phil Weiser, who filed the lawsuit on behalf of the state, released a statement of confidence following Thursday’s ruling.
“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. “This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this megamerger will not go into effect during harvest season and while kids are headed back to school.
“The trial is set to begin on September 30 and my office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice.”
Alaska’s lone representative in Congress, Rep. Mary Peltola, agreed with Colorado’s attorney general. In a statement to Alaska’s News Source, Peltola said she was pleased with Thursday’s ruling.
“I’ve been clear that I believe this merger is bad for Alaska,” Peltola said. “Today’s announcement is welcome news, and a good step in the right direction.
“I’ll keep working to make sure Alaskans’ voices and our unique state’s needs are elevated as this process plays out.”
Alaskan’s reactions to the news on social media varied, but many were against the lawsuit:
The merger — reported to be worth $24.6 billion — was announced in October 2022. The two grocery giants say it’s necessary to allow them to better compete with big retailers like Walmart, Costco, and Amazon (owner of Whole Foods), and allows them the power to negotiate prices and save on distribution/administrative costs.
While the sale has been proposed, it still needs federal approval. Currently, the Federal Trade Commission (FTC) has also sued to block the merger, calling it uncompetitive and the largest deal of its kind in U.S. history.
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