Federal Judges Block $24.6 Billion Albertsons-Kroger Merger, Leading to Lawsuit

An Oregon federal judge and a Washington state judge have blocked Kroger’s $24.6 billion acquisition of Albertsons, leading Albertsons to call off the agreement and sue Kroger for billions, USA Today reports.

Albertsons-Kroger Merger Trial Overview

Who: A trial involving a Federal Trade Commission (FTC) challenge against the Albertsons-Kroger merger.

Why: Albertsons argues the merger is necessary to compete with major retailers like Walmart, Costco, Target, and Amazon. The FTC claims the merger would reduce competition and harm consumers and workers.

Where: The trial is being held in the U.S. District Court for the Northern District of Oregon.

Judges Rule Against Albertsons-Kroger Merger

The Oregon federal judge issued a temporary block on the merger following an FTC challenge, ruling it would reduce competition for consumers and workers.

The Washington state judge, however, went further, issuing a permanent national block, stating the merger would violate consumer protection laws.

In response, Albertsons has canceled the merger and is now suing Kroger for allegedly mishandling the deal.

FTC: Merger Would Harm Consumers and Workers

The FTC, which filed its lawsuit in February, is seeking a preliminary injunction to prevent the merger from proceeding.

FTC attorney Susan A. Musser argued the merger would result in higher grocery prices, reduced consumer choice, and a loss of bargaining power for union workers.

“This multibillion-dollar deal would result in Kroger swallowing Albertsons and would eliminate the competition between these two companies that shoppers and union workers depend on in one fell swoop,” Musser said.

Albertsons Warns of Store Closures, Layoffs

Albertsons contends that if the merger is permanently blocked, it may need to:

• Conduct layoffs
• Close some store locations
• Exit certain markets entirely

Albertsons attorney Enu A. Mainigi emphasized that without the merger, the grocery chain lacks the wholesale buying power to compete with industry giants.

Largest Supermarket Merger in U.S. History

If approved, the Albertsons-Kroger merger would be the largest supermarket merger in U.S. history, affecting:

• Nearly 5,000 grocery stores across 48 states
• More than 700,000 workers

Case Information

The Albertsons-Kroger merger trial is In re: Federal Trade Commission, et al. v. Kroger Co., et al., Case No. 3:24-cv-00347, in the U.S. District