Temporary block of Kroger-Albertsons merger by federal judge celebrated by Colorado Attorney General
A federal judge has temporarily blocked the merger of Kroger and Albertsons after a three-week hearing. The Federal Trade Commission sued over the $25 billion deal in February, asking that it be put on hold to allow more time for an FTC administrative judge to examine its potential impacts.
Kroger operates 148 King Soopers and City Market stores, and Albertsons operates 105 Safeway and Albertsons stores in the state. The FTC claims that allowing Kroger and Albertsons to merge would lead to less competition and higher prices.
Colorado Attorney General Phil Weiser celebrates the ruling as a win for consumers, workers and local farmers.
"All along, we have made the case that the Kroger-Albertsons merger is illegal and bad for Colorado. It is bad for grocery shoppers who are already feeling pinched at the checkout counter. It's bad for workers and their job security and benefits. And it's bad for farmers and other suppliers because there would be fewer local food options available at the store," Weiser said.
The preliminary injunctions issued by an Oregon court found in favor of the Federal Trade Commission, which had argued the deal would violate antitrust law. The injunction enables the FTC to hold hearings and determine whether to stop the merger entirely.
In a statement, UFCW local unions representing more than 100,000 grocery store employees says the merger would have resulted in lost jobs, closed stores, food deserts, and higher prices with reduced food choices.
"We call on Kroger and Albertsons executives to abandon this misguided merger and turn their focus back where it belongs: operating grocery stores," UFCW said in its statement. "They should redirect the billions of dollars that had been earmarked to pay off Albertsons' shareholders to instead re-invest in our stores. Investing in better staffing to improve customer service, reducing long lines and out-of-stocks, and fixing the broken equipment that our members are forced to work with every day would allow Kroger and Albertsons to compete and grow market share and create lasting value for long-term shareholders, while meeting the needs of workers and consumers."
Colorado has brought a separate case in state court to block this anticompetitive grocery merger and to challenge an illegal, no-poach and no-solicitation agreement between the two companies during the 2022 King Soopers strike.
Weiser says, while they wait for a ruling in their case, they are optimistic that this merger will be permanently blocked.
