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Colorado's bid to halt Kroger-Albertsons merger set for August hearing


Updated Mon, March 25, 2024


By Mike Scarcella

(Reuters) -A Denver state judge said on Monday that he will hear arguments beginning on Aug. 12 in Colorado's case seeking to block Kroger's $25 billion purchase of rival grocer Albertsons.


The order by District Court Judge Andrew Luxen puts Colorado two weeks ahead of a similar hearing before the U.S. Federal Trade Commission and other states' separate nationwide lawsuit challenging the merger.

"I make no promises about when my orders will be out," Luxen said. Colorado's attorney general, like the FTC, is seeking a preliminary injunction to halt the supermarket mega-merger. The judge said he would strive to rule "quickly."

Kroger and the FTC did not immediately respond to requests for comment. Albertsons declined to comment.

Luxen heard arguments for more than a hour on Monday about how and whether to accommodate Colorado's independent interest in challenging the deal amid the ongoing FTC case in Oregon federal court.

The FTC and eight states sued Kroger in February to stop the deal, saying it would increase prices for millions of Americans. Washington state is also separately challenging the deal, and a hearing in that case is expected to start on Sept. 16 in Seattle-based King County Superior Court.

Kroger and Albertsons have defended the merger, first announced in October 2022, and denied the claims it would lead to higher prices. The deal would strengthen Kroger's position as the second largest player in the US grocery market behind Walmart.

Kroger has proposed to divest 413 stores and eight distribution centers to C&S Wholesale Grocers, and said it may need to shed an additional 237 stores to gain regulatory approval.

An attorney for Kroger, Matthew Wolf, said during Monday's hearing in Denver that the company would be providing an "enhanced" new divestiture package "in the coming days."

Luxen said he would hold a permanent injunction hearing in the Colorado case on Sept. 30.

(Reporting by Mike Scarcella; Editing by David Bario, Rosalba O'Brien and Michael Perry)