Federal judge temporarily halts proposed Kroger and Albertsons merger

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A federal judge has temporarily halted a proposed merger between supermarket giants Kroger and Albertsons, an action that could scuttle the deal.

FILE - A customer moves purchases at a Kroger grocery store in Flowood, Miss., June 26, 2019. U.S. District Court Judge Adrienne Nelson issued the ruling Tuesday after holding a three-week hearing in Portland, Oregon.

Federal regulators argue that combining the two chains would be bad for consumers and workers by eliminating competition. The companies say a merger would help them better compete with big retailers like Walmart, Costco and Amazon.have asked a different federal judge to block the in-house proceedings. Colorado and Washington are also trying to halt the merger in ongoing state trials. The judge in Washington was expected to release his opinion later Tuesday.

But Kroger and Albertsons argued their merger would preserve consumer choice by allowing them to better compete against its growing rivals. In its testimony, Albertsons warned Nelson that it might have to lay off workers, close stores and even exit some markets if the merger weren't allowed to proceed.

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