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PORTLAND, Ore. – On Tuesday, a U.S. federal judge temporarily blocked the proposed $25 billion merger between grocery giants Kroger and Albertsons, siding with the Federal Trade Commission (FTC). The ruling halts what could have been the largest grocery store merger in U.S. history, citing concerns about reduced competition and potential harm to consumers.
U.S. District Judge Adrienne Nelson determined that merging the two largest traditional grocery chains would likely stifle competition, raise consumer prices, and weaken unionized workers’ bargaining power. Her ruling followed a three-week trial featuring testimony from executives, economists, and union representatives.
The FTC argued that combining Kroger and Albertsons would eliminate critical competition in the grocery sector, ultimately hurting shoppers. FTC spokesperson Douglas Farrar hailed the decision as “a win for competition in the grocery market.”
Kroger and Albertsons defended the merger, asserting that combining operations would drive down prices through improved efficiency and strengthen their ability to compete against large non-union retailers like Walmart, Amazon, and Costco.
Despite these claims, Judge Nelson found their proposed divestiture of 579 stores to C&S Wholesale Grocers inadequate, stating that C&S lacked the resources to effectively manage such a large-scale acquisition.
Statement from Krogers:
“Through its proposed merger with Albertsons, Kroger would invest more than $1 billion in lower grocery prices, invest an additional $1 billion in higher grocery worker wages, and invest an additional $1.3 billion to improve Albertsons stores. Kroger is disappointed in the opinions issued by the U.S. District Court for the District of Oregon and the Washington State Court, which overlook the substantial evidence presented at trial showing that a merger between Kroger and Albertsons would advance the company’s decades-long commitment to lowering prices, respecting collective bargaining agreements, and is in the best interests of customers, associates, and the broader competitive environment in a rapidly evolving grocery landscape. The Company is currently reviewing its options.”
