Kroger has submitted a post-trial brief regarding its proposed $24.6 billion merger with Albertsons. The hearing, which concluded on 17 September, was presided over by U.S. District Judge Adrienne Nelson in Oregon. Final briefings were allowed until 27 September, and the judge noted she would work “as expeditiously as possible” to reach a decision, given the widespread anticipation surrounding the case.
The Federal Trade Commission (FTC) had previously filed for a preliminary injunction in August, seeking to block the merger on antitrust grounds. The trial, which lasted three weeks in Portland, Oregon, saw more than 30 witnesses, including economic experts and market analysts, debating the current state of the U.S. grocery market and the future implications of this merger. Points of focus included the impact on Kroger and Albertsons’ workforces, the proposed divestiture of 579 stores to C&S Wholesale Grocers LLC, and a thorough economic analysis assessing potential harm to consumers.
In parallel to the Oregon case, Kroger and Albertsons are also contending with separate legal actions in other states. In Washington, Attorney General Bob Ferguson is pursuing a case scrutinising the merger’s potential antitrust violations, mindful of the precedent set by Albertsons’ 2015 acquisition of Safeway, which led to the bankruptcy of regional grocer Haggen. Washington’s legal strategy is being reinforced by outside counsel from Munger Tolles & Olson LLP.
Another lawsuit is pending in Colorado, where Attorney General Phil Weiser has filed to block the merger following a year-long investigation. Weiser’s case argues that the deal would significantly reduce competition in an already concentrated market, raising concerns over potential monopolistic control. The Colorado case, which began on 30 September, adds further complexity to the scrutiny of this merger.
Kroger, based in Cincinnati, serves over 11 million customers daily through a combination of physical stores and its digital platform, operating under various regional banners. Albertsons, headquartered in Boise, operates more than 2,200 stores and related facilities, including pharmacies and distribution centres, under over 20 different banners. Should the merger be approved, the combined companies would dramatically alter the competitive dynamics of the American grocery industry.
As legal battles continue on multiple fronts, the question remains whether the merger will enhance efficiency or lead to diminished competition and consumer harm. The decision in Oregon, expected soon, will be pivotal in shaping the future course of this significant merger.