Kroger-Albertsons merger blocked by court ruling

The Kroger-Albertsons merger, first announced back in October of 2022, has been blocked by U.S. District Judge Adrienne Nelson. In addition to the U.S. Federal Trade Commission, eight states have challenged the $24.6 billion merger since it was first announced.

The FTC argued the merger between the grocery giants would increase grocery prices and create lower wages for workers — and Nelson agreed. “Evidence shows that defendants engage in substantial head-to-head competition and the proposed merger would remove that competition,” Nelson said, according to The Wall Street Journal.

While no announcement has been made by the companies yet, WSJ said attorneys for Kroger and Albertsons have previously stated they would likely abandon the deal if the judge sided with the FTC. If the deal is called off, Kroger reportedly has to pay Albertsons a $600 million breakup fee.