Kroger, Albertsons merger put on pause

The proposed $25 billion merger of Kroger and Albertsons has been paused until the Colorado District Court rules on a lawsuit filed to block the deal that is expected to push up grocery prices, State Attorney General Phil Weiser said on Thursday, per a Reuters report.

"The trial is set to begin on Sept. 30 and my office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice," Weiser said in a statement, the report noted.

The U.S. Federal Trade Commission and eight states had said in late-February they were suing to block the supermarket mega-merger, which was announced in October 2022 and expected to create a grocery empire with more than 4,000 stores, the report noted.

[Read more: Kroger’s bid to dismiss Colorado lawsuit against Albertsons merger denied]

U.S. District Judge Adrienne Nelson in March had set Aug. 26 as the start of a hearing on the FTC's bid for a preliminary injunction to challenge the deal. The FTC and the other states' decision came after Colorado and Washington State sued to block the merger.

Bloomberg News reported that a Colorado District Court judge granted a preliminary injunction halting the deal at a hearing in Denver on Thursday and canceled a hearing set for Aug. 12.

[Read more: Kroger reports Q1 results]

A Kroger spokesperson provided Drug Store News with a statement. “Today’s decision is welcome news as it eliminates the need for a preliminary injunction hearing in Colorado that was previously scheduled to begin August 12. The hearing on the state’s request for a permanent injunction will go forward as scheduled on September 30. We look forward to defending in court how the combination of Kroger and Albertsons will provide meaningful, measurable benefits, including lower prices and more choices for families across the country and more opportunities for stable, well-paying union jobs.”