A judge has granted preliminary injunction to stop the planned merger between Kroger and Albertsons grocery stores.
U.S. District Judge Adrienne Nelson of Oregon and Washington ruled in favor of the Federal Trade Commission’s decision to stop the proposed $24.6 billion merger.
“There is ample evidence that the divestiture is not sufficient in scale to adequately compete with the merged firm and is structured in a way that will significantly disadvantage C&S as a competitor. C&S’ history of unsuccessful grocery store ventures and its continuing dependence on defendants throughout the TSA period also suggest that the divestiture will not adequately restore competition,” Nelson wrote in her ruling. “The deficiencies in the divestiture scope and structure create a risk that some or all of the divested stores will lose sales or close, as has happened in past C&S acquisitions.”
Judge Nelson, who was appointed by President Joe Biden, said the two grocers’ claim that they would not be able to compete against Costco, Walmart, and Amazon unless they merged didn’t sway her.
“The overarching goals of antitrust law are not met, however, by permitting an otherwise unlawful merger in order to permit firms to compete with an industry giant,” Nelson said.
The FTC applauded the decision, calling it a win for union employees.
“The FTC, along with our state partners, scored a major victory for the American people, successfully blocking Kroger’s acquisition of Albertsons. This is also a victory for thousands of hardworking union employees, protecting their hard-earned paychecks by ensuring Kroger and Albertsons continue to compete for workers through higher wages, better benefits, and improved working conditions,” the FTC said, identifying the main reason that the FTC is opposing the merger — unions oppose it.
Kroger said in a statement, ““Kroger is disappointed in the opinions issued by the U.S. District Court for the District of Oregon and the Washington State Court, which overlook the substantial evidence presented at trial showing that a merger between Kroger and Albertsons would advance the company’s decades-long commitment to lowering prices.”
Judge Nelson, considered a partisan Democrat by many, was originally appointed to the Oregon Supreme Court by Democrat Gov. Kate Brown of Oregon. She was nominated by Biden and confirmed to the federal court by nearly a party-line vote in 2023, with Sen. Lisa Murkowski crossing over to vote in favor, and Sen. Dan Sullivan voting against.
Useless Murkowski needs to go
Whichever idiot claims that the judicial system is unbiased and does not take political sides when deciding legal issues…..is an effing IDIOT!!!
Everything would be just fine if the goddamn government would just get out of the way. You can thank that empty pantsuit Peltola for this. She was a real loser, figuratively and actually.
Prices at Fred Meyer (a Kroger entity) have gone up disproportionately since the pandemic. They price some items higher than a specialty store like Natural Pantry. I even found a rare bag of tortilla chips at a lower price at a convenience store near Willow. I fear that a merger would simply drive prices even higher. I don’t blame the workers, but I don’t quite understand why high level management makes the decisions it does. Not all is right in the corporate world.
It appears that the only monopoly allowed in America is the K12 education monopoly. Why is that?
When the judiciary has become the decision maker in nearly every aspect of American life it is time to rethink the role of the courts.
This is not working and is not what the Founders envisioned.
This decision will ultimately drive the the lion’s share of the market to Amazon(free delivery) Costco Walmart.
All the places everyone loves to shop…..
My neighbor even has his toilet paper delivered by a truck burning up the road at high speed while he sits in his easy chair.
He claims he is “living the dream”.
The posts indicate MRAK readers know next to nothing about how governement works. Mergers are regulated by the FTC, part of the Executive Branch. For the clueless Murkowski and peltola are part of the legislative branch. As for the merger, it is foolish to believe less competition lowers prices.
Gee, thanks for the “how government works” explanation. Now, please explain your explanation in practical terms that actually make sense.
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