Kroger-Albertsons $25bn grocery merger blocked by US judge

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Country’s two biggest supermarket operators suffer a potentially fatal blow in their efforts to consolidate

The largest supermarket merger in US history has been blocked by a federal judge, handing a victory to federal antitrust regulators who argued Kroger’s $24.6bn purchase of Albertsons would harm consumers and workers. US district judge Adrienne Nelson in Oregon on Tuesday imposed a preliminary injunction on the takeover, which sends the proceedings to the Federal Trade Commission for further consideration.

The attorneys-general of Colorado and Washington separately filed lawsuits alleging harm in their states’ courts. The judge in the Washington case, Marshall Ferguson, issued a permanent injunction against the merger later on Tuesday, writing that “providing complete relief to Washington consumers necessarily requires an injunction that blocks the deal as a whole”. He said his decision was permitted under the US Constitution. Kroger and Albertsons said they were reviewing their options.

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