DENVER (KDVR) — The proposed merger between grocery giants Kroger and Albertsons has been fought in U.S. courts for months, and a trial in Denver District Court just wrapped up arguments.
Whether or not the merger will be subject to a permanent injunction is still to be decided by a Denver judge, although it’s unclear when that ruling may be handed down. If the merger is allowed, it would be the largest supermarket merger in U.S. history and would effect 579 stores nationwide.
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A temporary injunction was issued in July, blocking the deal temporarily. According to the case docket, parties are scheduled to appear in court on Oct. 28 for a review following the arguments and testimony provided for the past few weeks, and further dates are scheduled in early November.
At the same time, a Washington judge is scheduled to announce a decision on the merger on Nov. 15 on a case that’s comparable to the Colorado case. Another case finished in Oregon this summer. The U.S. Federal Trade Commission also sued to block the merger earlier this year, saying the $24.6 billion deal would eliminate competition and cause Americans to pay higher prices at the grocery store.
Colorado’s Kroger-Albertsons merger trial is different
Weiser told FOX31’s Gabrielle Franklin in September that this case is a little different from the others because of the Colorado Antitrust Act, which a judge ruled in July the merger would probably violate and issued a temporary injunction until further evidence could be presented.
“That ruling put a temporary pause on the merger. We’re now prepared for what we believe will be the case that will end this merger and will prevent it from harming Coloradans,” said Weiser during a news conference on Sept. 27.
Kroger and Albertsons are the parent companies of King Soopers and Safeway, with 91 stores that would be affected in Colorado if the merger goes through. UFCS Local 7, which represents the workers at King Soopers and Safeway in Colorado (approximately 17,000 workers statewide), has been a vocal supporter of AG Weiser’s trial team as it argued in Denver District Court for the past month, exceeding the planned two-week trial timeline.
“We have opposed this proposed merger since day one because of the obvious threat it poses to workers and shoppers across the nation and at home here in Colorado,” said Kim Cordova, President of UFCW Local 7, in a release. “Instead of wasting more time and more money on this bad idea, these companies should be investing in better stores and better staffing to improve the experience of workers and shoppers alike. We hope that AG Weiser’s case is successful in blocking this mega-merger.”
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As of Sunday, Kroger and Albertsons had not issued any public-facing comments regarding the trial in Denver.
Other unions representing grocery store workers have also voiced their concerns regarding the nationwide merger. UFCW has launched a website, nogrocerymerger.com, to share their opinions on the merger of their workplaces.
On Friday, Weiser called the proposal to join Kroger and Albertsons a megamerger that “would harm consumers and is illegal.
“Colorado shoppers don’t need to imagine what grocery prices without competition would look like. Kroger executives admitted on the stand that they already charge higher prices in our mountain communities where there is no competition,” Attorney General Phil Weiser said in a release.
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“The planned divestitures of Safeway stores to C&S fail to save the merger,” he continued. “If C&S operates the divested stores in the manner it has run other stores it owns, they’ll be a smaller and worse competitor in the market, leaving consumers worse off. Indeed, under the most likely scenario, more than half of the divested stores will close. We witnessed such an outcome after the Albertsons/Safeway merger and cannot let it happen again.
“In all events, the Kroger/Albertsons merger is bad for consumers, workers, farmers, and communities. If this merger goes through, Albertsons will be replaced with a smaller and weaker competitor, prices will rise for consumers who are already feeling pinched, local food options will suffer, consumers will have fewer options, and workers and their futures will be put at risk. That’s why we have asked the court to block the illegal Kroger/Albertsons merger.”
In April, Kroger and Albertsons announced plans to sell 579 stores to C&S if the merger goes through. C&S was set to pay $2.9 billion for the change.
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In August, Kroger promised to invest $1 billion to “further” reduce grocery prices, in addition to investing $1 billion in wages and benefits and $1.3 billion into Albertsons stores “to enhance customer experience.”
As of Oct. 27, Kroger and Albertsons had not said anything about the trial in Colorado. However, Kroger filed a motion against the FTC in August, arguing that the agency’s administrative tribunal is violating constitutional protections for the company.
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The two companies have also said this merger would help lower prices and better compete with rivals like Walmart, Costco and Amazon. The merger, which has been in the works since October 2022, would not close any stores, according to the pair of grocery suppliers.
The companies said the merger would be good for store associates, too, besides the $1 billion investment in wages. The companies said Kroger’s average hourly wage rose to nearly $25 per hour in 2023, due to the company’s investments.
