CASPER, Wyo. — The proposed merger of grocery giants Kroger and Albertsons worth $25 million was blocked on Tuesday by a U.S. judge in Portland, Oregon.
According to a Reuters report, U.S. District Judge Adrienne Nelson agreed with a filing by the Federal Trade Commission that the merger would likely eliminate direct competition between the two large grocers, which would make it unlawful.
FTC spokesperson Douglas Farrar said the ruling “protects competition in the grocery market, which will prevent prices from rising even more,” according to Reuters.
“This statement win makes it clear that strong, reality-based antitrust enforcement delivers real results for consumers, workers, and small businesses,” he said.
Kroger argued against the FTC’s claims, saying the merger would bring down prices and lead to cost cuts within the company through cost-saving measures.
The latest ruling could likely end the merger attempts. The proposed merger still faces legal challenges in Washington state, as well as in Colorado.
Earlier this year, Albertsons released a list of stores it proposed to sell in hopes of gaining regulatory approval. Five Wyoming stores — including Casper’s CY Avenue location — were slated to be sold to C&S Wholesale Grocers if the deal goes through. However, many analysts questioned C&S Wholesale Grocers’ ability to compete and survive in a consolidated industry dominated by much larger companies.
Grocery giants Albertsons and Kroger first announced their plan to merge in fall 2022 in response to increasing competition from the likes of Walmart and Amazon. The planned merger faced stiff opposition from unions, along with local and federal governments.
Oil City News has reached out to UFCW Local 7 representatives for comment. The union represents grocery workers in Wyoming and Colorado, and strongly opposed the merger.
This story will be updated.
