CASPER, Wyo. — The controversial proposed merger between grocery giants Kroger and Albertsons is temporarily on hold after a Denver District Court judge granted a preliminary injunction and canceled an Aug. 12 hearing on the matter.
According to industry publication Progressive Grocer, both companies agreed to the delay.
Instead of the hearing next month, a two-week trial will start on Sept. 30. The delay is a result of a lawsuit filed by Colorado Attorney General Phil Weiser to block the merger. The lawsuit claims that a merger would eliminate competition in the market and further consolidate an already concentrated market.
The news was met with optimism by the United Food and Commercial Workers Union Local 7, which represents grocery workers in Colorado and Wyoming.
“We’re pleased with the court’s decision to temporarily halt the proposed mega-merger, which would have devastating impacts in communities here in Colorado and across the country,” said union president Kim Cordova in a release issued on Thursday. “Our members and customers alike are concerned about potential job losses, food and pharmacy deserts, increased food prices, cost to food suppliers, and a lack of competition if the merger goes through. It’s not a done deal, and we will continue to do all we can to stop the merger.”
Earlier this month, Albertsons released a list of stores it proposed to sell in hopes of gaining regulatory approval. Five Wyoming stores — including Casper’s CY Avenue location — are slated to be sold to C&S Wholesale Grocers if the deal goes through.
Grocery giants Albertsons and Kroger first announced their plan to merge in fall 2022 in response to increasing competition from the likes of Walmart and Amazon. The planned merger is facing stiff opposition from unions, along with local and federal governments.
