Kroger-Albertsons Merger Blocked by Court, Handing Victory to Biden Antitrust Enforcers

A federal judge blocked Kroger KR 5.57%increase; green up pointing triangle from acquiring Albertsons ACI -2.93%decrease; red down pointing triangle, siding with Biden administration antitrust enforcers who said the $20 billion supermarket merger would erode competition and raise prices for consumers.

U.S. District Judge Adrienne Nelson agreed with the Federal Trade Commission’s argument that Kroger would become the dominant player in traditional supermarkets if allowed to add nearly 2,000 stores by taking over Albertsons, its smaller rival. Nelson rejected the companies’ counterargument that selling 579 stores to C&S Wholesale Grocers would replace the lost competition.

Kroger shares were 4.9% higher, while Albertsons stock dropped 3.5%.