A U.S. district judge blocked a billion bid by Kroger to takeover Albertsons in a victory for the Federal Trade Commission.

Getty Images

Simone Del Rosario Anchor

U.S.

Kroger and Albertsons’ $25 billion mega-merger blocked by federal judge

Dec 10, 2024

Listen

Simone Del Rosario Anchor

By Simone Del Rosario (Anchor), Evan Hummel (Producer), Harry Fogle (Video Editor)

A U.S. district judge blocked what would have been the largest U.S. merger in supermarket history on Tuesday, Dec. 10. The judge agreed with the Federal Trade Commission’s argument that Kroger’s $25 billion bid to takeover Albertsons would end up hurting shoppers.

Bias Distribution Powered by Ground News™

The FTC had argued eliminating the head-to-head competition between Kroger and Albertsons would be illegal, and the U.S. district judge in Oregon agreed.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

An FTC spokesperson said the ruling protected “competition in the grocery market, which will prevent grocery store prices from rising more.”

During the trial, Kroger argued that the merger would decrease prices for customers, saying increased revenue from a larger operation would trickle down to shoppers. The grocery store even made a public pledge to lower prices if the merger went through.

Lawyers for Kroger also claimed the companies needed the merger to compete with global brands like Walmart and Amazon.

However, grocery worker unions didn’t buy in, and they said the merger would lead to job losses.

Meanwhile, attorney generals in 10 states also came out against the marriage of the two companies, with some joining the FTC lawsuit against the merger, and others suing the grocery store chains.

Kroger and Albertsons did not immediately respond to the ruling, but the companies could still choose to litigate the issue in a separate case and court.

While Tuesday’s ruling is a win for the Biden administration’s tough antitrust stance, a former FTC chair previously told Straight Arrow News he expects the merger landscape will be less strict under President-elect Donald Trump.

If the deal somehow makes it through, nearly 600 stores would be added under Kroger’s banner, increasing its number of stores to around 5,000 across the U.S.

Tags: Albertsons, Donald Trump, Federal Trade Commission, FTC, groceries, Inflation, Joe Biden, Kroger, merger

[SIMONE DEL ROSARIO]

A FEDERAL JUDGE JUST BLOCKED WHAT WOULD HAVE BEEN THE LARGEST U-S MERGER IN SUPERMARKET HISTORY.

KROGER’S $25 BILLION DREAM TO TEAM UP WITH ALBERTSON’S IS OFFICIALLY ON ICE.

THE JUDGE AGREED WITH THE FEDERAL TRADE COMMISSION’S ARGUMENT THE MERGER WOULD END UP HURTING SHOPPERS. THE FTC HAD ARGUED ELIMINATING THAT HEAD-TO-HEAD COMPETITION WOULD BE ILLEGAL.

AN F-T-C SPOKESPERSON SAID THE RULING “PROTECTS COMPETITION IN THE GROCERY MARKET, WHICH WILL PREVENT GROCERY STORE PRICES FROM RISING MORE.”

DURING THE TRIAL, KROGER ARGUED THE MERGER WOULD DECREASE PRICES FOR CUSTOMERS, SAYING INCREASED REVENUE FROM A LARGER OPERATION WOULD TRICKLE DOWN TO SHOPPERS. THE GROCERY GIANT MADE A PUBLIC PLEDGE TO LOWER PRICES IF THE MERGER WENT THROUGH.

LAWYERS FOR KROGER ALSO CLAIMED THE COMPANIES NEEDED THE MERGER TO COMPETE WITH GLOBAL BRANDS LIKE WALMART AND AMAZON.

BUT GROCERY WORKERS UNIONS DIDN’T BUY IN. THEY SAID THE MERGER WOULD LEAD TO JOB LOSSES.

ATTORNEYS GENERAL IN TEN STATES ALSO CAME OUT AGAINST THE MARRIAGE.

KROGER AND ALBERTSONS DID NOT IMMEDIATELY RESPOND TO THE RULING. THE COMPANIES COULD STILL CHOOSE TO LITIGATE THE ISSUE IN A SEPARATE CASE AND COURT.

WHILE TUESDAY’S RULING IS A WIN FOR THE BIDEN ADMINISTRATION’S TOUGH ANTITRUST STANCE, A FORMER FTC CHAIR PREVIOUSLY TOLD STRAIGHT ARROW NEWS HE EXPECTS THE MERGER LANDSCAPE WILL BE LESS STRICT UNDER PRESIDENT-ELECT DONALD TRUMP.

IF THE DEAL SOMEHOW MAKES IT THROUGH, KROGER AND ALBERTSONS WOULD COMBINE FOR AROUND FIVE THOUSAND STORES NATIONWIDE.

KROGER STOCK CLOSED UP 5% TUESDAY ON NEWS A JUDGE BLOCKED THE DEAL, WHILE ALBERTSONS’ STOCK FELL MORE THAN 2%.

FOR MORE STORIES LIKE THIS – DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT SAN DOT COM.

FOR STRAIGHT ARROW NEWS– I’M SIMONE DEL ROSARIO.

Kroger and Albertsons’ $25 billion mega-merger blocked by federal judge

Bias Summary

Bias Comparison

Bias Distribution

Untracked Bias