Proposed merger of Kroger and Albertsons halted by federal and state judges

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The proposed merger between supermarket giants Kroger and Albertsons floundered on Tuesday after judges overseeing two separate cases both halted the deal.

Later Tuesday, Judge Marshall Ferguson in Seattle issued a permanent injunction barring the merger in Washington after concluding it would lessen competition in the state and violate Washington's consumer-protection laws.

The FTC called Nelson’s decision “a major victory for the American people" that will protect them from higher grocery prices. In Washington, Governor-elect Bob Ferguson, who brought the case against Kroger and Albertsons as the state’s attorney general, called the state court’s decision “an important victory for affordability, worker protections and the rule of law.”

Kroger had promised to invest $1 billion in lower grocery prices, an additional $1 billion in higher grocery worker wages and $1.3 billion to improve Albertsons stores. But Nelson wasn't swayed.

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