Kroger, Albertsons agree to pause merger impacting Western Slope grocery stores while lawsuits proceed

A proposed merger of grocery behemoths Kroger and Albertsons is on pause after the companies agreed to wait to proceed until legal action against the deal is complete.

The halt comes after Colorado Attorney General Phil Weiser filed a temporary injunction in the state’s case opposing the merger. He filed a lawsuit to stop the merger in February, arguing it would eliminate competition and impact food prices, jobs, and consumer choice.

“This is great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school,” he stated in a press release. 

The trial in the state’s case is set to begin Sept. 30.

The U.S. Federal Trade Commission filed a separate lawsuit to stop the deal in February, also arguing it would create a lack of competition, resulting in higher grocery prices and decreased wages for workers. The federal case has a court date set for Aug. 26. 

If their merger is approved by regulators, the companies have agreed to sell nearly 600 grocery stores nationwide, including 10 on the Western Slope, to C&S Wholesale Grocers.  

C&S runs 160 retail locations including all Piggly Wiggly stores, a Southeastern grocery chain that once operated in Colorado. 

C&S has said no stores will close as a result of the merger and all frontline associates will remain employed, according to the announcement of the plan. All existing collective bargaining agreements will also continue. 

The two grocery giants announced their $25 billion merger in 2022 but have faced roadblocks since then.

Elliott Wenzler is the Western Slope politics reporter for The Aspen Times and its sister publications in Glenwood Springs, Vail, Steamboat Springs, Summit County, and Grand County.