Kroger Co. and Albertsons have agreed to delay closing their $24.6 billion merger until after a judge ruled on Colorado regulators’ antitrust case. This decision allows the companies to avoid a two-week hearing next month.
Denver District Judge Andrew J. Luxen issued a preliminary injunction on Thursday, July 25.
The court’s order specifies that the evidentiary hearing, initially scheduled for August 12, 2024, is vacated. Instead, it will be consolidated into the trial on the merits, which is set to begin on September 30, 2024.
Colorado Attorney General Phil Weiser expressed satisfaction with the court’s decision. He stated, “I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state’s antitrust lawsuit to permanently block the grocery merger.”
Denver District Court Ruling
Meanwhile, defendants Kroger, Albertsons, and C&S Wholesale Grocers are prohibited from consummating the proposed transaction until the court rules on the state’s request for permanent injunctive relief.
Additionally, the defendants must prevent their officers, directors, agents, and affiliates from proceeding with any related transaction directly or indirectly. This preventive measure underscores the seriousness of the court’s injunction.
Consequently, the court merged the State’s Motion for Preliminary Injunction into the trial on the merits of the action. Thus, the scheduled August 12, 2024 antitrust hearing on this motion is removed from the court’s calendar.
The trial on the merits, including a hearing on the State’s request for permanent injunctive relief, will commence on September 30, 2024, as planned. This pivotal antitrust trial will determine the future of the proposed merger.
The Antitrust Trial
Weiser highlighted the benefits for various stakeholders, emphasizing that the delay assures shoppers, workers, farmers, and suppliers that the merger will not proceed during critical periods, including the harvest season and back-to-school preparations.
The Colorado Attorney General reaffirmed his office’s commitment to opposing the merger. He expressed confidence in presenting the antitrust case that the merger would harm competition and affect food prices, jobs, and consumer choice.
Related Article: Kroger will Fight in Court the FTC’s Lawsuit Over its Merger with Albertsons
In response, Kroger welcomed the court’s decision. They noted that it eliminates the need for a preliminary injunction hearing in Colorado, previously set for August 12.
In a statement to the media, Kroger emphasized their eagerness to defend the merger in court. “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.”
Kroger and Albertsons are facing four different legal challenges to the merger. Attorneys general in Colorado and Washington have challenged the deal in state court actions while the Federal Trade Commission is simultaneously pursuing a federal lawsuit and FTC administrative hearing to block the merger.