Kroger, Albertsons agree to temporarily halt merger plans while Colorado lawsuit proceeds

Supermarket chains Kroger and Albertsons on Thursday agreed to temporarily halt their proposed merger in Colorado until a judge has considered the state’s objections.

Kroger and Albertsons announced their planned merger in October 2022. The companies say they would be better able to compete with rivals like Walmart and Costco if they merge.

But Colorado Attorney General Phil Weiser sued to block the merger earlier this year, saying it would harm shoppers and workers by eliminating the competition that now exists between the 148 Kroger-owned groceries and 105 Albertsons-owned groceries in Colorado.

A judge in Denver District Court was scheduled to consider a preliminary injunction that would temporarily block the merger on Aug. 12. But on Thursday, Judge Andrew Luxen said all of the parties in the case had agreed that Kroger and Albertsons would temporarily halt their merger plans until after the court rules in the state's case.

Luxen will consider the state's argument that the merger should be permanently blocked during a trial scheduled to begin Sept. 30.

The case is one of several challenging the $24.6 billion merger.

In February, the Federal Trade Commission sued to block the merger in federal court. That lawsuit, which will proceed in Oregon, was joined by eight states and the District of Columbia. The judge in that case is scheduled to consider the FTC's request for a preliminary injunction on Aug. 26.

The state of Washington has also sued to block the merger.