In a recent development, the proposed $24.6 billion merger between The Kroger Co. and Albertsons Cos. has been temporarily halted by Denver District Court Judge Andrew J. Luxen. The decision was made during a hearing on July 25, where Luxen granted a preliminary injunction delaying the merger and also canceled the scheduled August 12 hearing on the matter. Both Kroger and Albertsons have agreed to the delay.

Instead of the August hearing, a two-week trial has been set to begin on September 30. Kroger expressed satisfaction with the decision, as it eliminates the need for a preliminary injunction hearing. A spokesperson for Kroger stated that the company looks forward to defending the merger in court, highlighting the benefits it would bring, including lower prices and more choices for families across the country, as well as opportunities for stable, well-paying union jobs.

The merger has faced opposition since Colorado Attorney General Phil Weiser filed a lawsuit in the Denver District Court in February to block it. According to the lawsuit, the merger would eliminate direct competition between Kroger and Albertsons, leading to a market consolidation that is already concentrated. Earlier this month, Kroger's bid to dismiss the lawsuit was denied.

Kroger operates over 140 King Soopers and City Market stores in Colorado, while Albertsons runs more than 100 Safeway and Albertsons stores in the state. Weiser expressed satisfaction with the decision to halt the merger, stating that it is great news for shoppers, workers, farmers, and other suppliers. He emphasized that the merger will not go into effect during the harvest season and as children head back to school.

Another hearing related to the merger has been scheduled for August 26 in the U.S. District Court for the District of Oregon. The hearing will address the Federal Trade Commission's (FTC) request for a preliminary injunction against the merger. The FTC filed suit six months ago to halt the merger and divestiture plan, asserting that the proposed mitigation measures fall short and would lead to increased grocery prices for millions of Americans.

Kroger recently released a list of stores, distribution centers, and plant locations that it plans to divest to C&S Wholesale Grocers if the merger is completed. The plan includes divesting 579 Kroger and Albertsons stores, along with other assets. Kroger has already started informing associates at those locations about the potential move. Additionally, it was revealed that if the merger goes through, Albertsons EVP and COO Susan Morris would lead the retail division of C&S Wholesale Grocers.

Kroger, based in Cincinnati, is ranked No. 4 on The PG 100, Progressive Grocer's 2024 list of the top food and consumables retailers in North America. Albertsons, headquartered in Boise, Idaho, holds the No. 9 position on The PG 100. C&S Wholesale Grocers, based in Keene, N.H., is ranked No. 18 on the list.

As the legal battle over the Kroger and Albertsons merger continues, both companies eagerly await their day in court to defend the proposed combination and its potential benefits for consumers and employees alike.

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