$25-billion Kroger-Albertsons merger plan is blocked by federal judge

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A federal judge on Tuesday temporarily blocked what would be the largest supermarket merger in U.S. history, involving Kroger and Albertsons.

Kroger’s plans to buy its grocery rival Albertsons hit a major roadblock Tuesday, when a federal judge put a halt to the deal, which would be the largest supermarket merger in U.S. history. The decision is a blow to Albertsons and Kroger, which announced plans for the $24.6-billion acquisition of its rival in 2022.

The supermarket chains say they’ve kept their gross profit margins low as part of their efforts to lower prices and will reduce the disparity between the grocery prices at Kroger and Albertsons. To fend off concerns that reduced competition would lead to higher grocery store prices, Kroger and Albertsons have proposed selling 579 stores to another company, C&S Wholesale Grocers. The proposal includes 63 stores in California, mainly in Southern California. U.S.

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