U.S. District Court Grants FTC's Request To Block Kroger's $24.6 Bln Acquisition Of Albertsons

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(RTTNews) - The U.S. District Court for the District of Oregon has granted the U.S. Federal Trade Commission's or FTC request for a preliminary injunction to block the acquisition of Albertsons Companies Inc. by Kroger Co. (KR). This $24.6 billion deal was opposed by the FTC and a bipartisan coalition of nine state attorneys general.

The FTC hailed this ruling as a historic victory, stating that it safeguards millions of Americans from price increases on essential groceries like milk, bread, and eggs, effectively keeping more money in consumers' pockets. The decision has a significant and tangible impact on the lives of millions of Americans who rely on Kroger or Albertsons-owned grocery stores, including Fry's in Arizona, Vons in Southern California, and Jewel-Osco in Illinois, for their daily needs.

In February 2024, the Federal Trade Commission along with a group of nine attorneys general have filed a lawsuit to block Kroger Co.'s proposed $24.6 billion acquisition of the Albertsons Companies Inc., alleging that the deal is anticompetitive.

FTC alleged that the planned merger, which would be the largest among supermarkets in U.S. history, would eliminate competition and raise grocery prices, while harming thousands of workers. The proposed merger was announced in 2022.

The group of nine attorneys general that joined the FTC's federal court complaint includes representatives from Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming.

Meanwhile, Colorado Attorney General in mid February had filed a lawsuit to stop the proposed merger, expressing concerns about potential harm to consumers. A similar lawsuit was filed by Washington state in January.