As clock ticks on Kroger-Albertsons FTC case, more court battles loom against merger

PORTLAND, Ore. — The critical hearing in federal court into Kroger ’s proposed $25 billion takeover of Albertsons will stretch into a fourth week after attorneys for the grocers rested their case Thursday.

Next up, regulators with the Federal Trade Commission will call rebuttal witnesses to testify on Friday and closing arguments are scheduled for Tuesday. U.S. District Court Judge Adrienne Nelson will then consider arguments in the bench trial before issuing her ruling.

The delay means Kroger and Albertsons will still be defending their proposed merger in federal court as Washington Attorney General Bob Ferguson heads to state court against the deal on Monday when opening arguments in that case begin. Another state case will begin on Sept. 30 when the Colorado Attorney General is set to go to court in his antitrust case against the merger .

What the hearing is about

First announced in October 2022, Cincinnati-based Kroger offered to buy Boise, Idaho-based Albertsons, adding most of its employees and stores to its supermarket operation. Earlier this year, regulators sued in federal court to kill the deal.

The hearing is to decide whether to grant a court order to halt the merger as it pursues another case in Washington, D.C. to stop the deal. Attorneys for Kroger have warned such an order, called a preliminary injunction, would doom the merger.

In a bid to reassure concerns about maintaining competition, Kroger has agreed to sell off 579 stores to a C&S Wholesale Grocers , a New Hampshire-based company. Regulators charge the company isn’t a viable competitor, since it only operates about two dozen retail supermarkets and is mostly a supplier.

About the Kroger Albertsons merger

The proposed merger, if successful, would be among the largest ever in retail. Kroger would operate more than 4,400 supermarkets (up from 2,700) generating about $208 billion in annual sales (compared to $150 billion before). If consummated, Kroger would employ about 640,000 workers (up from about 414,000 currently), which could make it one of the 10 largest private employers in the world.

Kroger says the deal will help it become more efficient and stay competitive against the likes of Walmart, Costco and Amazon and has promised to cut grocery prices by $1 billion if the merger is approved. Kroger and Albertsons have also said jobs and stores will be preserved.

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This article originally appeared on Cincinnati Enquirer: As clock ticks on Kroger-Albertsons FTC case, more court battles loom against merger