A federal judge on Tuesday blocked Kroger’s $24.6 billion acquisition of Albertsons, ruling that the proposed union would lessen competition for grocery shoppers.
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 FTC in February sued to block the proposed merger, with the agency joined in its suit by eight state attorneys general and the District of Columbia.
“Today’s win protects competition in the grocery market, which will prevent prices from rising even more. This statement win makes it clear that strong, reality-based antitrust enforcement delivers real results for consumers, workers, and small businesses,” an FTC spokesperson stated.
Kroger and Albertsons did not immediately respond to requests for comment. The companies agreed to join in October 2022, arguing their union was needed to better compete with Amazon, Costco, Walmart and other larger rivals.
Kroger, based in Cincinnati, Ohio, operates 2,750 stores in 35 states and the District of Columbia, including brands like Ralphs, Smith’s and Harris Teeter. Albertsons, based in Boise, Idaho, operates roughly 2,300 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 700,000 people.
Kroger has promised to invest $500 million to lower prices as soon as the deal closes. It said it also invested in price reductions when it merged with Harris Teeter in 2014 and Roundy’s in 2016. Kroger also pledged to invest $1.3 billion in store improvements at Albertsons as part of the deal.
The FTC, which said the proposed deal would be the largest grocery merger in U.S. history, said it would also erase competition for workers, threatening their ability to win higher wages, better benefits and improved working conditions.
Kate Gibson
Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.
