A federal judge has temporarily halted the proposed merger between supermarket giants Kroger and Albertsons. After a three-week hearing in Portland, Oregon, U.S. District Court Judge Adrienne Nelson issued a preliminary injunction on Tuesday to block the merger.
In addition, Judge Marshall Ferguson in Seattle permanently barred the merger from taking place in Washington state due to concerns that it would decrease competition and violate consumer-protection laws.
The proposed $24.6 billion deal was met with legal challenges from various parties, including the Federal Trade Commission who expressed worries about reduced competition and increased prices as a result of the combined company.
Following these court decisions, Albertsons announced on Wednesday that they will be calling off their planned merger with Kroger. In a statement released by CEO Vivek Sankaran, he stated: “Given recent rulings by federal and state courts blocking our intended partnership with Kroger, we have made the difficult decision to terminate our agreement.” Sankaran also expressed disappointment in these court decisions.
