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Ruling pauses plans for merger of Kroger and Albertsons due to Colorado's legal challenge

Major proposed merger between 2 grocery giants on hold
Major proposed merger between 2 grocery giants on hold 01:54

The Colorado Attorney General's office is applauding a ruling that puts the plans for a proposed merger between two of the country's largest grocery store chains temporarily on hold.

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(credit: CBS)

The proposed merger's pause will be in effect until a ruling is made on the State of Colorado's lawsuit which was filed with the intention of permanently blocking a merger between Kroger and Albertsons. King Soopers and City Market stores in Colorado are operated by Kroger and Albertsons is the parent company of Safeway stores across Colorado.

At a Thursday morning hearing, Judge Andrew J. Luxen issued an order temporarily blocking the proposed $25 billion merger.

In a statement, Colorado Attorney General Phil Weiser said "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."

The Colorado case is scheduled to go to trial this fall.

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