Albertsons-Kroger Merger Blocked by Courts, Companies Face Fallout

Judges cite antitrust concerns in halting $24.6 billion deal, leading to lawsuits and stock buybacks by both grocery chains.

U.S. District Judge Adrienne Nelson and a Washington state judge issued injunctions blocking the Albertsons-Kroger merger over antitrust concerns, citing risks of higher prices and reduced competition.
Albertsons terminated the merger and filed a lawsuit against Kroger, alleging failure to secure regulatory approval and seeking billions in damages.
Both companies announced billions in stock buybacks and dividends to bolster investor confidence after the deal collapsed, benefiting major shareholders like Cerberus Capital Management and BlackRock.
The Federal Trade Commission and consumer groups celebrated the blocked merger as a win for shoppers and workers, while the Biden administration's antitrust stance received praise in its final weeks.
The decision comes as grocery prices continue to rise, with November inflation data showing a 1.6% year-over-year increase in food costs, raising broader concerns about affordability.