A district court judge in Northern California earlier this week dismissed a consumer antitrust lawsuit aiming to halt the proposed merger between Kroger and Albertsons.
Twenty-five people around the U.S. filed the lawsuit in February, alleging that the acquisition violates the Clayton Antitrust Act and Sherman Antitrust Act and that Albertsons’ $4 billion dividend would hurt the grocery company’s financial standing, result in higher prices and worsen services.
The judge denied the plaintiffs’ motion for a preliminary injunction.
“[The plaintiffs] have made no effort to explain how the merger would affect any one of them personally, in the area where they live and shop for groceries,” Judge Vince Chhabria of the U.S. District Court for the Northern District of California wrote in the ruling.
The judge also rejected the plaintiffs’ claims about Albertsons’ $4 billion dividend payment — which prevailed over multiple legal battles at the end of last year — by saying “the plaintiffs offer no credible allegations to ground these predictions.”
Even if the plaintiffs had adequately alleged standing for their allegations, the lawsuit would still be dismissed or suspended because the case is not fully ready for litigation, the judge said
“The contours of the merger have not yet become clear enough to adequately assess the effects it will have on competition — whether that assessment needs to be done nationally or on a market-by-market basis,” per the ruling, which noted that it would be premature to adjudicate the antitrust claims while the Federal Trade Commission undergoes its review of the merger and proposed divestitures.
Last October, Kroger unveiled its plans to purchase Albertsons for almost $25 billion. The companies expect the deal to close in early 2024, subject to regulatory approval.