Supermarket chains Albertsons and Kroger on Thursday announced they are temporarily putting their merger on hold while waiting for a ruling on a lawsuit filed by Colorado.
Initially, a judge in Denver District Court was scheduled to consider a preliminary injunction aimed at temporarily blocking the merger on Aug. 12.
Albertsons and Kroger announced plans to merge in a $24.6 billion deal in October 2022. In the announcement, the supermarket chains said the merger could help "expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience."
"This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors," Rodney McMullen, Kroger Chairman and Chief Executive Officer, who will continue serving as Chairman and CEO of the combined company, said.
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As part of the deal, Albertsons and Kroger said they would sell nearly 600 locations to C&S Wholesale Grocers in hopes of securing regulatory approval for the deal. The companies would also part ways with six distribution centers, a dairy plant, and other non-store assets should the merger push through.
Earlier this year, Colorado Atty. Gen. Phil Weiser filed a lawsuit blocking the merger, arguing that the partnership would eliminate the competition existing between 148 Kroger groceries and 105 Albertsons stores in the state. He added that the merger would likely only harm the shoppers and workers of the supermarket chains.
When Is the Trial Scheduled To Begin?
Judge Andrew Luxen, who is set to oversee the trial, will consider the state's argument that the Albertsons-Kroger merger should be permanently blocked in a trial scheduled to begin Sept. 30.
"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," a Kroger spokesperson told Fox Business in relation to the upcoming trial.
The Colorado lawsuit is one of several challenging the $24.6 billion Albertsons-Kroger merger. The Federal Trade Commission in February sued to block the merger in federal court. That case is scheduled for a preliminary injunction on Aug. 26.
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