Kroger and Albertsons agree to postpone merger preparations as the Colorado trial unfolds

On Thursday, Kroger and Albertsons decided to put their planned $25 billion merger on hold as authorities filed legal objections in an attempt to thwart the agreement.

The two businesses consented to a temporary order that halts the merger while Colorado's complaint is being handled. This action eliminates the requirement for the preliminary injunction hearing that was originally slated for next month.

"The trial is set to begin on Sept. 30 and my office looks forward to making the case that this merger will eliminate competition and impact food prices, jobs, and consumer choice," Colorado Attorney General Phil Weiser said in a statement.

The two companies have agreed to sell roughly 600 locations to C&S Wholesale Grocers in order to win regulatory approval for the merger, and a list of which stores would be sold was recently provided. The merger would be the largest in the history of the supermarket industry.

As part of the wider, revised divestiture plan, Albertsons and Kroger upped the number of locations that would be sold by 166 in April after first announcing in September 2023 that 413 stores would be sold. In accordance with the plan, six distribution centers, a dairy factory, specific brands, and other non-store assets would be transferred between Kroger and Albertsons.

Critics of the proposed merger have expressed worry that it will lead to the closure of grocery stores, reducing consumers' access to basics and eliminating jobs, as well as potentially boosting costs for food and other retail products.

Kroger is the largest supermarket operator in the United States, with around 2,700 stores. It owns Ralphs, Harris Teeter, Fred Meyer, and King Soopers. Albertsons is the nation's second-largest chain, with around 2200 locations.