Kroger and Albertson's delay merger until after Colorado antitrust lawsuit resolved
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Kroger and Albertson's have agreed to delay completing their proposed $24.6 billion merger until after a court resolves an antitrust lawsuit filed by the Colorado Attorney General's Office seeking to stop the deal.
The lawsuit filed by state Attorney General Phil Weiser charges that the proposed deal will eliminate fierce competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items for millions of Americans.
Weiser hosted 19 town halls across Colorado prior to filing the lawsuit on behalf of the state, including one in Pueblo, and said those conversations left him “convinced that Coloradans think this merger between the two supermarket chains would lead to stores closing, higher prices, fewer jobs, worse customer service, and less resilient supply chains.”
“Coloradans are concerned about undue consolidation and its harmful impacts on consumers, workers, and suppliers,” Weiser said in a news release.
The merger is also being challenged federally with an Federal Trade Commission lawsuit, which similarly charges that the proposed deal and subsequent loss of competition "lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries."
The deal is also being challenged in a lawsuit by Washington State Attorney General Bob Ferguson.
The agreement between the two grocery titans delays the possible completion of the deal until at least October, with the Colorado trial scheduled to begin Sept. 30.
“I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state’s lawsuit to permanently block the grocery merger,” Weiser said in a July 25 statement. “This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school."
If regulators approve the merger between Kroger and Albertsons, more than 90 Colorado Safeway and Albertsons stores — including the Pueblo Safeway at 1231 S. Prairie Ave. and the Albertsons at 1601 U.S. Highway 50 West — would be transferred to C&S Wholesale Grocers. C&S owns the Piggly Wiggly grocery brand and operates the “largest wholesale grocery supply company in the U.S,” according to its website.
Kroger operates 148 stores in Colorado, all of which are King Soopers and City Market locations. Albertsons manages 105 Safeway Albertsons stores across the state.
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This article originally appeared on The Pueblo Chieftain: Colorado lawsuit puts Kroger-Albertsons merger on hold, for now
