Dive Brief:
- A Colorado judge has issued an order that temporarily blocks the proposed merger between Kroger and Albertsons, granting the state’s request for a preliminary injunction, the state’s attorney general said in an emailed statement.
- Kroger and Albertsons agreed not to consummate their merger until the state court rules on a lawsuit brought by Colorado’s attorney general seeking to permanently block the mega-deal.
- The trial is scheduled to begin Sept. 30.
Dive Insight:
Kroger, Albertsons and C&S Wholesale Grocers cannot move forward with their deal until five business days after the court rules on Colorado Attorney General Phil Weiser’s request for permanent injunctive relief, Judge Andrew J. Luxen of the district court for the city and county of Denver ordered.
The judge also canceled a hearing that was scheduled for Aug. 12 to evaluate Weiser’s request for an injunction.
Kroger said in a Thursday emailed statement that the order “is welcome news” because it eliminates the need for that preliminary injunction hearing.
“We look forward to defending in court how the combination of Kroger and Albertsons will provide meaningful, measurable benefits, including lower prices and more choices for families across the country and more opportunities for stable, well-paying union jobs,” Kroger said.
In February, Weiser filed a lawsuit seeking to block the merger, claiming the deal violates the Colorado Antitrust Act of 2023 and that the two grocers have “a “history of collusion” stemming from unlawful no-poach and non-solicitation agreements. The lawsuit followed a multistate investigation into the deal led by Weiser’s office.
Weiser said the grocers’ agreement to pause their merger plans 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.”
“[My] office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice,” Weiser said.
Kroger and Albertsons are also facing a federal court hearing set to begin late next month in Portland, Oregon, during which a judge will decide whether to grant a request by the Federal Trade Commission for a preliminary injunction to stop the merger. Attorneys general for eight states and Washington, D.C., joined the FTC in its suit against Kroger and Albertsons. Colorado is not part of that group.
The grocers reacted forcefully to the FTC’s contention that their merger should not be allowed to proceed because it would reduce competition and hurt workers.
The agency’s effort to stop the merger “is willfully blind to the realities of current grocery competition,” and its position “lacks any basis in the real world,” Kroger said in a March legal filing.
The supermarket companies, which currently run about 5,000 grocery stores between them, have proposed selling almost 600 locations in 18 states and Washington, D.C., to C&S Wholesale Grocers in an effort to reduce antitrust concerns surrounding their planned combination.
