U.S. Courts Block Kroger's $25-B Merger With Rival Albertsons

A US judge has blocked the pending $25-billion merger of grocery chains Kroger and Albertsons, marking a significant win for the Federal Trade Commission (FTC).

Kroger had indicated that the ruling would likely terminate the deal. I Photo: Kroger

Kroger had indicated that the ruling would likely terminate the deal, Jody Godoy reported for Reuters.

During a three-week trial in Portland, Oregon, the FTC argued that the merger would eliminate head-to-head competition between the two largest traditional grocery chains, resulting in higher prices for shoppers and reduced bargaining power for unionized workers.

The ruling, which could be appealed, is a notable victory for FTC Chair Lina Khan and President Joe Biden's administration in their efforts to combat inflation at the consumer level.

US District Judge Adrienne Nelson concluded that the merger would unlawfully eliminate direct competition between the grocers.

Separately, a Washington state court judge in Seattle also ruled to block the merger in a case brought by Attorney General Bob Ferguson, who estimated that half of all supermarkets in the state are owned by one of the two chains.

The White House, responding to the rulings, said they were "proud to stand up against big corporate mergers that increase prices, undermine workers, and hurt small businesses."