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Colorado's bid to halt Kroger-Albertsons merger set for August hearing
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Colorado's bid to halt Kroger-Albertsons merger set for August hearing
Mar 25, 2024 3:54 PM

March 25 (Reuters) - A Denver state judge said on Monday

that he will hear arguments beginning on Aug. 12 in Colorado's

case seeking to block Kroger's ( KR ) $25 billion purchase of

rival grocer Albertsons ( ACI ).

The order by District Court Judge Andrew Luxen puts Colorado

two weeks ahead of a similar hearing before the U.S. Federal

Trade Commission and other states' separate nationwide lawsuit

challenging the merger.

"I make no promises about when my orders will be out," Luxen

said. Colorado's attorney general, like the FTC, is seeking a

preliminary injunction to halt the supermarket mega-merger. The

judge said he would strive to rule "quickly."

Kroger ( KR ) and the FTC did not immediately respond to requests

for comment. Albertsons ( ACI ) declined to comment.

Luxen heard arguments for more than a hour on Monday about

how and whether to accommodate Colorado's independent interest

in challenging the deal amid the ongoing FTC case in Oregon

federal court.

The FTC and eight states sued Kroger ( KR ) in February to stop the

deal, saying it would increase prices for millions of Americans.

Washington state is also separately challenging the deal, and a

hearing in that case is expected to start sometime after August.

Kroger ( KR ) and Albertsons ( ACI ) have defended the merger, first

announced in October 2022, and denied the claims it would lead

to higher prices. Kroger ( KR ) is the largest grocer in America by

revenue.

Kroger ( KR ) has proposed to divest 413 stores and eight

distribution centers to C&S Wholesale Grocers, and said it may

need to shed an additional 237 stores to gain regulatory

approval.

An attorney for Kroger ( KR ), Matthew Wolf, said during Monday's

hearing in Denver that the company would be providing an

"enhanced" new divestiture package "in the coming days."

Luxen said he would hold a permanent injunction hearing in

the Colorado case on Sept. 30.

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