Cincinnati and Boise, Idaho — A judge in the Oregon federal court has blocked Kroger Co.’s $24.6 billion acquisition of Albertsons Cos. U.S. District Judge Adrienne Nelson agreed with the Federal Trade Commission’s argument that Kroger would become the dominant player in traditional supermarkets if the deal passed, and rejected the companies’ counterargument that selling 579 stores to C&S Wholesale Grocers would replace the lost competition.
In a press release issued today, Albertsons announced that it has exercised its right to terminate its merger agreement with Kroger. Additionally, Albertsons has filed a lawsuit against Kroger in the Delaware Court of Chancery. Albertsons states that Kroger refused to offer an adequate divesture package and repeatedly ignored regulators’ concerns, causing the merger to be blocked.
Boise-based Albertsons operates 2,267 retail food and drug stores across 34 states and the District of Columbia under more than 20 banners such as Safeway, Jewel-Osco, Shaw’s, Acme and Tom Thumb.
Cincinnati-based Kroger operates nearly 2,800 stores in 35 states under two dozen banners such as Mariano’s, Harris Teeter and Pick ‘n Save.