Federal judge blocks merger of Kroger and Albertsons, citing threat to competition

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The temporary injunction, which halts the merger while a Federal Trade Commission proceeding plays out, is expected to effectively torpedo that deal.

By Kristine de Leon, oregonlive.comThe Carrs location at 4000 West Dimond Boulevard in Anchorage is one of the locations included in the planned divestiture as part of the proposed merger of Kroger and Albertsons.

Boise-based Albertsons is Kroger’s largest rival after Walmart. Albertsons owns the grocery chain that bears its name as well as Safeway, Vons, Randalls and several other chains. The grocers said their merger would help the combined company better compete against brick-and-mortar and online competitors.

A preliminary injunction temporarily blocks the merger until the federal agency can resolve its administrative proceeding against what it says would be the largest supermarket consolidation in U.S. history. The FTC says its in-house hearing about the proposed deal would not begin until Dec. 18. The grocers argued that customers have many choices to shop for food, from traditional supermarket stores to club stores to convenience stores and dollar stores. Kroger and Albertsons view any place that takes a portion of a customer’s spending on food as a competitor.

In an effort to ease concerns about a merger’s impact on competition, Kroger and Albertsons said they’ll sell 579 of their stores to New Hampshire-based C&S Wholesale Grocers, a grocery supplier that also runs a small chain of stores in the Northeast. In Oregon, 62 stores would’ve been sold to C&S.

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