Federal judge temporarily halts $25 billion merger between City Market and Safeway parent companies

A federal judge on Tuesday ruled to temporarily halt a proposed $24.6 billion merger between supermarket giants Kroger and Albertsons, citing that it would lessen competition.

U.S. District Court Judge Adrienne Nelson’s ruling came after a three-week hearing in Portland, Oregon, which ruled in favor of the Federal Trade Commission’s argument that the deal would violate antitrust laws.

“All along, we have made the case that the Kroger/Albertsons merger is illegal and bad for Colorado. It is bad for grocery shoppers who are already feeling pinched at the checkout counter,” Colorado Attorney General Phil Weiser said in a prepared statement, adding that the merger harms workers, farmers and other suppliers.

Kroger and Albertsons announced the merger deal nearing $25 billion in 2022, which was met with separate lawsuits from the U.S. Federal Trade Commission, Washington Attorney General Bob Ferguson, and Weiser. All three claimed the merger was anticompetitive, and that it would cause store closures, higher prices, and in Colorado specifically, worsening supply chains. 

Kroger and Albertsons argued the merger would help them compete with large companies like Walmart and Costco.

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The Colorado case wrapped up on Oct. 24 and is still awaiting a decision.

“We wait for a ruling in our case, and we are optimistic that this illegal merger will be permanently blocked,” Weiser said.

Kroger owns King Soopers and City Market, while Albertsons is the corporate owner of Safeway. It is unclear when the remaining courts will announce a decision.