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DENVER—The proposed $25 billion merger of Kroger Co. and Albertsons Cos. is on hold today after a Colorado judge issued a preliminary injunction to halt it until after a September 30 trial.
The trial will address a lawsuit filed in February by Colorado Attorney General Phil Weiser, whose legal challenge aims to block the merger, arguing that it would reduce grocery competition and result in higher prices for consumers. Kroger and Albertsons have both argued that consumers would, in fact, benefit from the merger, and a Kroger spokesperson said the retailer is looking forward to defending the merger and outlining the benefits it would offer consumers in court.
This lawsuit is part of a broader challenge to the merger, with the U.S. Federal Trade Commission and eight other states also suing to prevent the deal from going ahead.
The proposed merger, announced in October 2022, would create a supermarket industry powerhouse with more than 4,000 stores. Washington State's attorney general was the first to challenge the merger, filing a lawsuit to block the deal in January, and the FTC's request for a preliminary injunction is set for a hearing on August 26.
