In a major antitrust decision, a U.S. district judge in Oregon on Tuesday blocked Kroger’s $25 billion bid to acquire Albertsons, which would have created the largest supermarket merger in U.S. history. The ruling sided with the Federal Trade Commission (FTC), which argued the merger would harm consumers by reducing competition and potentially driving up grocery prices.
An FTC spokesperson praised the decision, emphasizing its role in preserving competition and preventing price increases. The FTC and attorney generals from 10 states had opposed the deal, with some joining the lawsuit or filing separate suits.
Kroger contended the merger would benefit shoppers, claiming cost savings from the larger operation would lead to lower prices. The company even pledged publicly to reduce prices if the deal went through. However, grocery worker unions and other critics rejected the promises, warning the merger could result in job losses and harm local economies. Kroger also argued the merger was necessary to compete with retail giants like Walmart and Amazon.
Despite the ruling, Kroger and Albertsons could still pursue the merger in another court. If successful, Kroger’s footprint would grow to nearly 5,000 stores across the U.S.
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