Supermarket giants Kroger and Albertsons have been locking horns with Colorado’s attorney general for nearly three weeks as the companies defend their $25 billion merger in Denver district court.
Colorado is seeking to block the deal, which would be the largest supermarket merger in U.S. history, on the grounds it will raise prices for consumers. The transaction is facing numerous legal challenges at both the state and federal level from regulators and public officials who argue it will reduce competition in the grocery industry.
Executives from Kroger and Albertsons taking the stand in Denver argue the merger is necessary to compete with the likes of Amazon, Walmart and Costco. For instance, an Albertsons' market data executive testified on Wednesday that sales at its stores take a hit when a Costco opens nearby.
“Costco doesn’t just hurt in bath tissue – it hurts the entire store,” said Lisa Kinney, Albertsons Vice President of Customer & Market Intelligence.
The two companies are a familiar neighborhood presence to just about every Coloradan. Kroger owns King Soopers and City Market and is the largest grocer in the state. Albertsons owns Safeway.
Kroger has said it plans to reduce prices at Albertsons by $1 billion nationwide, including $40 million in price cuts for Coloradans.
There’s a ton of litigation around this deal. That makes keeping track of the details somewhat challenging. Here’s what Coloradans need to know:
When does the trial in Colorado end?
The trial in Colorado is expected to wrap up Oct. 24. There’s no timeline yet for when the court will reach a decision.
What about those other lawsuits?
The Federal Trade Commission sought a preliminary injunction to block the deal at a district court in Portland, Oregon. The FTC was joined by attorneys general from nine states. That trial ended last month. The Portland court hasn’t issued a ruling yet.
Washington state is also suing to stop the deal in its own case. That trial is set to end the day before Colorado’s.
What happens to my supermarket?
Kroger and Albertsons agreed to sell 579 stores nationwide to C&S Wholesale Grocers, a New Hampshire-based company, to address concerns the combined company will create a monopoly in areas with significant overlap The divestiture plan covers 91 stores in Colorado including most of the state’s Safeway and Albertsons locations, as well as two distribution centers and a dairy farm. So if you shop at King Soopers, nothing will really change. If you shop at Safeway, your store will still be called ‘Safeway’, but it will probably be owned by C&S. C&S has said it doesn’t plan to close any stores.
Of course, if the deal doesn’t go through, nothing will change.
When will all this litigation be done?
The judges in all three cases will make separate rulings on their own timelines.
Colorado Attorney General Phil Weiser said before the trial in Denver that there’s no way to know which court will rule first, but that his office intends to prosecute its case until the companies agree to abandon the deal.
- Trial starts Monday for Colorado lawsuit attempting to block Kroger-Albertsons merger
- Kroger and Albertsons plan to sell off stores to get approval for their merger, including Colorado locations
- Federal Trade Commission sues to block merger of grocery giants Kroger and Albertsons, saying it could push prices higher
- Kroger and Albertsons plan to sell 91 Colorado stores if proposed merger happens