A hearing to evaluate a request by the Federal Trade Commission for a preliminary injunction to block Kroger and Albertsons’ plan to merge is set to begin this summer.
In an order released on Monday, Judge Adrienne Nelson of the U.S. District Court for the District of Oregon said the hearing will start on Aug. 26 in Portland. The judge gave the parties in the case until Friday to file a proposed briefing schedule.
The high-stakes proceeding, which experts said could last for several weeks, represents a critical juncture for the grocery chains as they move ahead with an effort to turn aside the FTC’s challenge to their merger. While Kroger and Albertsons would be able to challenge an injunction if the judge grants regulators’ request for such an order, they would face a difficult path if they tried to do so, according to antitrust attorneys.
In announcing its intent to derail the merger last month, the agency framed the proposed transaction in stark terms, saying it would hurt shoppers and deal a blow to workers by reducing competition in the supermarket industry. The FTC also derided the grocers’ plan to sell more than 400 stores to C&S Wholesale Grocers, claiming that it would create a “hodgepodge” of assets that would not be able to effectively compete.
Kroger and Albertsons have said merging would help them stand up to competitors like Walmart, Costco and Amazon. In February, Kroger announced that it would lower prices for shoppers if it is able to complete the deal.
Speaking during an earnings call last Thursday, Kroger Chairman and CEO Rodney McMullen vowed to fight the FTC’s push to force the grocers to abandon their merger. He added, however, that Kroger is in a strong position to grow even if its bid to merge with Albertsons is ultimately unsuccessful.
“[W]e’re finding good growth opportunities in certain markets where we have a strong [return on invested capital] and there’s good population growth, and it’s something that we feel comfortable doing with or without the merger,” McMullen said during the call
