Kroger and Albertsons have agreed to delay completing their proposed $25 billion merger until after a Colorado court decides an antitrust lawsuit seeking to kill the deal, the Colorado attorney general said Thursday.
The agreement with state regulators likely delays the possible consummation of the deal until at least October as the Colorado trial is scheduled to begin on Sept. 30. The legality of the merger is also being challenged in federal court as well as in Washington state.
“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,” Colorado Attorney General Phil Weiser said in a 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."
What's happened so far in the proposed Kroger Albertson's merger?
The announcement is the latest sign Kroger's controversial takeover will be delayed, if it is ever approved. Originally announced in the fall of 2022, Kroger said it would close the deal by early 2024. In January, Kroger said the antitrust lawsuit in Washington would delay the merger until Aug. 17. As court dates have piled up in multiple antitrust lawsuits, Kroger has stopped predicting a closing date for the deal.
Kroger said Thursday it agreed to the deal to focus on merits of the antitrust case itself. The pact scraps the need for a previously scheduled Aug. 12 hearing to fight over a preliminary injunction that would bar the merger from taking place until the lawsuit is resolved. With the deal, the grocers are conceding to the injunction.
What's next in Kroger Albertson's merger
Kroger and Albertsons are still scheduled to fight an preliminary injunction on Aug. 26 in U.S. District Court in Portland, Oregon in the federal lawsuit brought by the Federal Trade Commission.
“Today’s decision is welcome news as it eliminates the need for a preliminary injunction hearing in Colorado," Kroger said in a statement. "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.”
About the Kroger Albertson's merger
One of the largest retail mergers ever, the proposed acquisition affects nearly 5,000 stores nationwide and has drawn controversy, attracting the opposition of politicians as well as consumer and union groups.