A Colorado judge issued an order temporarily blocking the proposed $25 billion (€23.1 billion) merger between Kroger and Albertsons, which has been challenged by the state attorney general, Bloomberg News reported.
At a hearing in Denver on Thursday (25 July), Judge Andrew J. Luxen granted a preliminary injunction halting the merger deal and canceled a hearing set for next month, according to the report.
Luxen will now oversee a two-week trial on the merits of the proposed tie-up beginning on 30 September, the report said, adding that the two companies agreed to delay closing their proposed deal until after the court rules.
Kroger and Albertsons did not immediately respond to Reuters' requests for comment.
Kroger-Albertsons Merger
In April of this year, Kroger and Albertsons Cos amended the asset sale agreement with C&S Wholesale Grocers to include an extra 166 stores in a bid to get regulatory approval for the proposed merger.
C&S will pay Kroger an all-cash consideration of about $2.9 billion, up from the previous payout of $1.9 billion (€1.8 billion).
With the inclusion of the additional 166 stores, the updated divestiture package will see a total of 579 stores being sold and operated by the new owner, C&S.
Kroger and Albertsons have been looking to offload stores to address regulatory concerns that have risen since they first announced the merger in October 2022.
In November 2022, lawmakers from across the political spectrum questioned executives at grocers Kroger Co and Albertsons Companies Inc about the planned merger amid concerns the tie-up could boost already-high food prices.
Last month, Kroger beat Wall Street estimates for quarterly same-store sales and profit, benefiting from more customers thronging its outlets for lower-priced groceries as sticky inflation stretches household budgets.
