Judge Blocks $25B Kroger-Albertsons Grocery Merger

A federal judge has temporarily halted a proposed merger between supermarket giants Kroger and Albertsons. U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the merger Tuesday after holding a three-week hearing in Portland, Oregon.

Judge Marshall Ferguson in Seattle also 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 deal, which would have been the biggest grocery store merger in U.S. history, faced several legal challenges, including one filed by the Federal Trade Commission, over concerns that the combined company would reduce competition and raise prices.

The move by the judges was followed by Albertsons on Wednesday calling off its $24.6 billion merger with Kroger. “Given the recent federal and state court decisions to block our proposed merger with Kroger, we have made the difficult decision to terminate the merger agreement,” said Albertsons CEO Vivek Sankaran in a statement. “We are deeply disappointed in the courts’ decisions.”