DENVER – A proposed $25 billion merger between Kroger and Albertsons has been put on hold by a Colorado judge until the court rules on a lawsuit filed earlier this year by the Colorado Attorney General to block the deal from happening.
“This 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,” said Colorado Attorney General Phil Weiser in a statement Thursday.
The trial is set to begin Sept. 30, he said, “and my office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice.”
If the deal goes through, approximately 91 Colorado grocery stores would be sold or transferred. Together, the stores would control nearly 13% of the grocery market in the United States, the Associated Press reported. In Denver, nearly half of all grocery stores would be under one big company.
The companies have maintained no stores would be closed and frontline associates would not lose their jobs.
It's not clear if the revised plan would satisfy regulators. The U.S. Federal Trade Commission (FTC) in February sued to block the $24.6 billion merger between the grocery giants, saying the lack of competition would lead to higher grocery prices and lower wages for workers.
“We’re pleased with the court’s decision to temporarily halt the proposed mega-merger, which would have devastating impacts in communities here in Colorado and across the country,” said United Food and Commercial Workers Union Local 7 President Kim Cordova in a prepared statement. “Our members and customers alike are concerned about potential job losses, food and pharmacy deserts, increased food prices, cost to food suppliers, and a lack of competition if the merger goes through. It’s not a done deal, and we will continue to do all we can to stop the merger.”
A total of eight states have challenged the merger. Two distribution centers and a plant in Denver would also be impacted.
The Sept. 30 trial, where the court will consider permanently blocking the merger, is scheduled to last 14 days.
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