Judge Stops Mega Merger: Kroger and Albertsons Not Allowed to Merge

A federal judge has blocked Kroger's $24.6 billion acquisition attempt of Albertsons. The court's decision in Oregon was made in favor of the Federal Trade Commission (FTC), which had argued that this merger would violate antitrust law. As early as February, the FTC, together with eight attorneys general and the District of Columbia, filed a lawsuit against the planned merger. A spokesperson for the FTC welcomed the ruling and emphasized that it would protect competition in the grocery sector— a measure that would prevent price increases. The spokesperson added that strong, reality-based measures in antitrust law provide tangible results for consumers, workers, and small businesses. Kroger and Albertsons, who announced their merger plans in October 2022, did not initially comment on the ruling. They previously argued that the merger was necessary to better compete with larger competitors such as Amazon, Costco, and Walmart. Kroger operates around 2,750 stores in 35 states and the capital, while Albertsons has about 2,300 stores in 34 states. Together, the companies employ around 700,000 employees. Kroger had promised to invest $500 million in price reductions and $1.3 billion in improving Albertsons stores should the merger be approved. The FTC highlighted that the merger could not only reduce competition in the grocery sector but also for the workforce, threatening their chances for higher wages and better working conditions.