Colorado will be first to hear arguments against Kroger-Albertsons merger
An order by District Court Judge Andrew Luxen of Denver, Colorado has set hearings to begin Aug. 12 on Colorado’s effort to block the $25 billion Kroger-Albertsons merger.
Colorado is one of eight states, along with the U.S. Federal Trade Commission (FTC) that has sued to stop the merger from occurring.
In its complaint, the State of Colorado and Attorney General Philip Weiser said, “Few would feel the impact of this proposed merger as profoundly as Coloradans, as Kroger is the biggest supermarket operator in the state, and ACI, which operates Albertsons, is third. Combined, they would control more than half of the supermarket industry in Colorado.”
The order from Judge Luxen means the hearing in Colorado will begin two weeks before the ones taking place before the FTC and other states.
"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."
The merger concerns employees from both companies as well as consumers.
Since Kroger and ACI compete ‘fiercely’ in the state, consumers benefit from the competition in the form of lower prices, friendly service, well-maintained and stocked stores, fresh products, diverse offerings, good rewards programs, and the ability to support local farmers and suppliers in their communities and the state, the Court complaint says.
ACI employees claim both companies would create a monopoly in the industry, with the court complaint saying the merger will lead to higher prices and diminished quality of the shopping experience.
That, they say, is precisely the kind of activity that the Colorado antitrust laws were drafted to address. Additionally, the proposed merger violates the Colorado Antitrust Act of 2023, court documents state.
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.
Judge Luxen had a hearing 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.
During the hearing, an attorney for Kroger, Matthew Wolf, said 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, Reuters reports.