Posted on 12/11/24
| News Source: Pikesville Patch
A proposed merger between grocery giants Kroger and Albertsons was halted Tuesday by two judges overseeing separate cases, leaving the $24.6 billion deal in legal limbo.
U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the merger Tuesday after holding a three-week hearing in Portland, Oregon.
Later Tuesday, Judge Marshall Ferguson in Seattle issued a permanent injunction barring the merger in Washington after concluding it would lessen competition in the state and violate Washington's consumer-protection laws.
The legal setback comes nearly a year after the FTC, Maryland Attorney General Anthony Brown and a bipartisan coalition of states filed a lawsuit challenging the proposed merger, saying it would eliminate competition and raise grocery prices in a time of already high food price inflation.
On Tuesday, Brown lauded the judge's decision.
“As the cost of basic necessities rise, Marylanders are spending more and more of their paychecks on groceries," Brown said in a statement. "Had this merger gone forward, these supermarkets would no longer have had a reason to offer lower prices than their main competitor, making it harder for Maryland families to put food on their tables."
Cincinnati-based Kroger operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Based in Boise, Idaho, Albertsons operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 710,000 workers and thousands of people across more than 80 stores in Maryland
There are 60 Safeway stores in Maryland and 18 Harris Teeter stores in the state.
The federal case now moves to the Federal Trade Commission, although Kroger and Albertsons have asked a different federal judge to block the in-house proceedings. Colorado is also trying to halt the merger in its own state trial.
The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. They said joining together would help them rein in costs and better compete with big rivals like Walmart and Costco.