Aug 15 (Reuters) - Supermarket chain Kroger ( KR ) plans

to lower grocery prices by $1 billion after the completion of

its proposed $25 billion merger with smaller rival Albertsons ( ACI )

, a company spokesperson said on Thursday.

Kroger ( KR ) had previously promised to lower grocery prices by

$500 million at Albertsons ( ACI ) locations.

Bloomberg News first reported the development earlier in the

day.

The supermarket mega-merger, first announced in October

2022, was expected to create a grocery empire with more than

4,000 stores. But the deal has faced several antitrust lawsuits

over concerns that it would push up grocery prices. Washington

State's attorney general was the first to challenge.

The proposed merger was halted last month pending a Colorado

District Court ruling on a lawsuit filed to block the deal. The

trial is set to begin on Sept. 30, State Attorney General Phil

Weiser had said.