Clifford Chance

One-stop shops stopped: Two judges block Kroger-Albertsons transaction

December 11, 2024

On December 10, 2024, a federal judge granted a motion by the Federal Trade Commission and nine state attorneys general to preliminarily enjoin Kroger’s proposed acquisition of Albertsons. Later that day, a Washington state judge permanently enjoined the deal under the state’s Consumer Protection Act.The two judges ruled on similar grounds, holding that the merger would harm supermarket competition by eliminating head-to-head competition between the companies. The judges also found that neither the merging parties’ proposed divestiture nor their proffered efficiencies would prevent the transaction from harming consumers. Together, these decisions provide several important considerations for parties considering a merger or an acquisition.

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