Kroger’s $25 billion takeover of Albertsons is blocked by judge

• Kroger’s planned $24.6 billion takeover of Albertsons has been blocked by a federal judge.
• The judge agreed with the FTC that the merger would weaken competition for U.S. grocery shoppers.
• The acquisition would be the largest supermarket merger in U.S. history.

Kroger’s planned $24.6 billion takeover of Albertsons was blocked by a federal judge on Tuesday, marking a victory for the Federal Trade Commission that could ultimately derail the deal.

U.S. District Judge Adrienne Nelson in Oregon concluded that the acquisition would weaken competition for U.S. consumers and agreed with the FTC’s arguments that it would violate antitrust laws.

In a statement to Business Insider following the ruling, Albertsons said it was disappointed by the ruling.

“We believe we have clearly demonstrated throughout the process how the proposed merger would increase competition, reduce prices, increase employee wages, protect union jobs and improve the customer shopping experience,” the statement said. “We are carefully reviewing the court’s opinion and evaluating our options consistent with the merger agreement.”

Kroger did not respond to a request for comment from BI.

The companies’ lawyers previously said the deal would likely be canceled if the judge rules against it.

“This merger will not occur with this injunction in effect,” Matthew Wolf, an attorney for Kroger, previously said in court.

The acquisition would be the largest supermarket merger in U.S. history. In its efforts to block the takeover, the FTC said the deal would reduce competition and lead to higher prices for U.S. grocery shoppers and lower wages for workers.

“Kroger and Albertsons are two of the largest supermarket chains in thousands of communities across the country,” the FTC lawsuit says. “In hundreds of these communities, the proposed acquisition would create a single supermarket with market shares so high that they are likely to be unlawful under antitrust laws.”

The companies argued that the acquisition would allow Kroger to compete with retail giants such as Walmart, Costco and Amazon. They also said the deal would result in lower prices for some consumers, citing higher prices at Albertsons stores compared to Kroger.

The judge’s decision also marked a victory for FTC Chairwoman Lina Khan, who has led aggressive antitrust efforts against big companies.