Judges block $25B Kroger-Albertsons merger

Man walks in a Vons supermarket, part of Albertsons grocery empire

The case will now move to an FTC in-house administrative court

(Image credit: Genaro Molina / Los Angeles Times via Getty Images)

What happened

A federal judge in Oregon Tuesday temporarily blocked Kroger's proposed $24.6 billion acquisition of rival supermarket giant Albertsons, agreeing with the Federal Trade Commission and eight states plus the District of Columbia that the merger would reduce competition and raise grocery prices. Hours later, a state judge in Seattle permanently halted the merger in Washington state.

Who said what

Kroger and Albertsons, the country's two largest traditional supermarket chains, "engage in substantial head-to-head competition and the proposed merger would remove that competition," said U.S. District Judge Adrienne Nelson in her ruling. She said the merger was "presumptively unlawful."

During three weeks of hearings, lawyers for the supermarket chains argued that they needed to combine to compete with big box giants like Walmart — the No. 1 seller of groceries nationwide — Costco and Amazon's Whole Foods. Kroger and Albertsons said they were "disappointed" by the ruling and considering their options.

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What next?

Nelson's ruling "doesn't immediately kill the deal," The Wall Street Journal said. The case moves next to an FTC in-house administrative court, though "the deal could fall apart" before another judge gets to weigh in, The Associated Press said.

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.