Colorado judge temporarily blocks Kroger, Albertsons merger
A Colorado judge issued an order temporarily blocking the proposed $25 billion merger between Kroger and Albertsons, which has been challenged by the state attorney general, according to court documents.
Kroger is the parent company of King Soopers in Colorado and Albertsons runs the Safeway chain in the state.
At a hearing in Denver on Thursday, Judge Andrew J. Luxen granted a preliminary injunction halting the deal and canceled a hearing set for Aug. 12.
“Defendants shall take any and all necessary steps to prevent any of their officers, directors, domestic or foreign agents, divisions, subsidiaries, affiliates, partnerships, or joint ventures from consummating, directly or indirectly, any such transaction,” the court ruling said.
Luxen will now oversee a two-week trial on the merits of the proposed tie-up beginning on Sept. 30, according to court documents, adding that the two companies agreed to delay closing their proposed deal until after the court rules.
Kroger and Albertsons did not immediately respond for comment.
In a statement, Colorado Attorney General Phil Weiser who kickstarted the state’s lawsuit against the merger showed support for the court’s ruling.
“I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state’s lawsuit to permanently block the grocery merger,” Weiser said.
“This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school.”
Reuters contributed to this report.