A U.S. federal judge has blocked Kroger's (KR, Financial) $24.6 billion acquisition of Albertsons (ACI), citing reduced competition in the grocery sector. The decision, favoring the Federal Trade Commission (FTC), argues that divesting stores to C&S Wholesale Grocers is insufficient to maintain competition. The ruling marks a significant win for the FTC and its chair, Lina Khan, known for her strong antitrust enforcement.
Kroger expressed disappointment, noting the deal could have lowered prices and improved store conditions. Albertsons is evaluating options following the court's decision. Analysts suggest the merger would have enhanced competition against Amazon and Walmart. Kroger now may focus on its existing stores, while Albertsons could become a takeover target.
