Federal judge halts Albertsons' $24.6 billion sale of Albertsons supermarkets to Kroger
The two companies together have more than 5,000 stores and employ more than half a million people. The FTC believes their merger endangers antitrust laws.
Kroger and Albertsons stores.
A federal judge in Oregon has temporarily halted the sale of the Albertsons supermarket chains to Kroger. The deal was agreed for the sum of 26,600 million dollars and proposed the merger of both corporations dedicated to distribution and sales.
The halt of the merger comes after the Federal Trade Commission (FTC) outlined a possible violation of antitrust rules. The merger of the two corporations would significantly reduce competitiveness in the sector.
It is the latest episode in a long merger process, which the FTC has opposed since last February. The ruling by an Oregon federal judge is joined by another ruling by a state judge in Washington, in addition to the support of eight attorneys general for the FTC's fight. The companies operate businesses across the country, so it has become a national issue.
The federal agency claims its meddling in this pact is in defense of American customers who, if the sale to Kroger is approved, would see the prices of several grocery products rise again.
More than 5,000 supermarkets around the country
Albertsons has about 2,300 stores in 34 states, including brands such as Safeway, Jewel Osco and Shaw's.
Together, the companies employ about 700,000 people for more than 5,000 grocery outlets.
During the Democratic administration, inflation has significantly affected the basket of shopping of the average American. "This landmark victory protects millions of Americans across the country from rising prices on staple foods, from milk to bread to eggs, ultimately allowing consumers to keep more money in their pockets," said Henry Liu, director of the FTC's Bureau of Competition.
"This victory has a direct and tangible impact on the lives of millions of Americans who shop at Kroger- or Albertsons-owned grocery stores for their daily needs, whether it's a Fry's in Arizona, a Von's in Southern California or a Jewel-Osco in Illinois."
LATEST
