Albertons-Kroger merger in limbo as the plan faces legal challenges. Here’s the latest

Albertsons’ plan to merge with grocery giant Kroger is in limbo.

The two supermarket chains agreed to temporarily halt the merger while they await the outcome of a lawsuit brought by the state of Colorado. The Federal Trade Commission and the state of Washington have also sued to block the merger, citing antitrust concerns.

Colorado Attorney General Phil Weiser said in a statement Thursday that shoppers, workers, farmers and other suppliers can rest assured that the merger will not take effect during the harvest and back-to-school seasons.

“ ... My office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs and consumer choice,” Weiser said.

Cincinnati-based Kroger, which operates the Fred Meyer chain in the Northwest, announced its plan to acquire Boise-based Albertsons nearly two years ago in October 2022. Albertsons was founded by Joe Albertson in 1939. The companies say the merger will help them compete more effectively in the shifting grocery market, where they face competition from Walmart, Amazon, Boise’s WinCo Foods and other stores.

An Albertons spokesperson did not immediately respond to a request for comment. A Kroger spokesperson told the Idaho Statesman by email that the preliminary injunction is “welcome news.”

“We look forward to defending in court how the combination of Kroger and Albertsons will provide meaningful, measurable benefits, including lower prices and more choices for families across the country and more opportunities for stable, well-paying union jobs,” the Kroger spokesperson said.

The trial is set to begin Sept. 30 in Denver.

Weiser sued Feb. 14 along with a motion for a preliminary injunction, seeking to prevent the proposed merger from closing until a final judgment can be rendered by the court.

C&S Wholesale Grocers LLC is also a defendant in the Colorado case. The little-known business, which operates two retail grocery chains: Piggly Wiggly in the South, Midwest and Northeast, and Grand Union in New York, is set to acquire 10 Albertsons stores in Idaho and 569 other stores around the country under assorted banners, should federal regulators approve the merger.

The FTC’s case is working its way through a federal court. Hearings on preliminary injunctions in that case and the Washington state case are scheduled for August.

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