Judge rules to block $24.6 billion Kroger-Albertsons merger
A federal judge ruled Tuesday to block a $24.6 billion merger between American grocery giants Kroger and Albertsons. Lawyers for the Federal Trade Commission, backed by President Joe Biden’s administration, and for the supermarket chains gave their closing arguments at the end of a three-week hearing in September on the commission’s request for a preliminary injunction to block the $24.6 billion deal. On Tuesday, a judge handed down a ruling siding with the FTC, who had argued that the merger could eliminate competition and lead to higher prices in court filings and hearings. Kroger and Albertsons argued their merger would preserve consumer choice by allowing them to better compete against growing rivals like Walmart, Costco and Amazon. The judge ruled in an Oregon court that a preliminary injunction had been granted, with the ruling stating that though the merger may be abandoned as a result of the injunction, the order still leaves open the possibility that the merger can be pursued at a later date if proceedings deem it lawful. According to CNBC, Kroger argued in court filings that the injunction “essentially scuttles the merger.” Kroger is the parent company of Chicago-area grocery chain Mariano’s, while Albertsons is the parent company of regional grocery mainstay Jewel-Osco. The companies had arranged to sell off stores in an effort to save the deal, but the merger would have left Kroger with approximately 5,000 stores across the U.S., according to filings. Illinois Attorney General Kwame Raoul was one of numerous AG’s across the country who signed onto a bipartisan lawsuit against the merger, saying that the deal would have “greatly reduced competition in the grocery market.” This is a developing story. Check back later for details.
A federal judge ruled Tuesday to block a $24.6 billion merger between American grocery giants Kroger and Albertsons.
Lawyers for the Federal Trade Commission, backed by President Joe Biden’s administration, and for the supermarket chains gave their closing arguments at the end of a three-week hearing in September on the commission’s request for a preliminary injunction to block the $24.6 billion deal.
On Tuesday, a judge handed down a ruling siding with the FTC, who had argued that the merger could eliminate competition and lead to higher prices in court filings and hearings.
Kroger and Albertsons argued their merger would preserve consumer choice by allowing them to better compete against growing rivals like Walmart, Costco and Amazon.
The judge ruled in an Oregon court that a preliminary injunction had been granted, with the ruling stating that though the merger may be abandoned as a result of the injunction, the order still leaves open the possibility that the merger can be pursued at a later date if proceedings deem it lawful.
According to CNBC, Kroger argued in court filings that the injunction “essentially scuttles the merger.”
Kroger is the parent company of Chicago-area grocery chain Mariano’s, while Albertsons is the parent company of regional grocery mainstay Jewel-Osco.
The companies had arranged to sell off stores in an effort to save the deal, but the merger would have left Kroger with approximately 5,000 stores across the U.S., according to filings.
Illinois Attorney General Kwame Raoul was one of numerous AG’s across the country who signed onto a bipartisan lawsuit against the merger, saying that the deal would have “greatly reduced competition in the grocery market.”
This is a developing story. Check back later for details.
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