Kroger and Albertsons Agree to Temporarily Pause Merger Plans While Colorado Trial Continues

Supermarket chains Kroger and Albertsons agreed Thursday to temporarily halt their proposed merger in Colorado until a judge considers the state’s objections.

Kroger and Albertsons have announced their merger project in October 2022. The companies say they would be better able to compete with rivals like Walmart and Costco if they merged.

But Colorado Attorney General Phil Weiser filed a lawsuit to block the merger earlier this year, saying it would harm consumers and workers by eliminating competition that currently exists between the 148 Kroger-owned grocery stores and the 105 Albertsons-owned grocery stores in Colorado.

A Denver district court judge was scheduled to consider a preliminary injunction that would temporarily block the merger on Aug. 12. But on Thursday, Judge Andrew Luxen said all parties in the case had agreed that Kroger and Albertsons would temporarily halt their merger plans until the court rules on the state case.

Luxen will consider the state’s argument that the merger should be permanently blocked at a trial scheduled to begin Sept. 30.

The case is one of several that call into question the $24.6 billion merger.

In February, the Federal Trade Commission filed suit to block merger in federal court. Eight states and the District of Columbia have joined the lawsuit, which will be heard in Oregon. The judge in the case is scheduled to consider the FTC’s request for a preliminary injunction on August 26.

Washington state also filed a lawsuit to block the merger.