Denver Judge Rejects Motion To Dismiss Colorado Lawsuit Opposing Kroger-albertson’s Merger

Denver District Court Judge Andrew J. Luxen rejected a motion by Kroger, owner of King Soopers, and Albertsons Companies, parent of Safeway, to dismiss a lawsuit Colorado Attorney General Phil Weiser filed challenging their combination. Luxen’s ruling, made Wednesday, should clear the way for the state’s anti-trust case, which was filed in mid-February, to move forward. Weiser, representing the state, alleges in his lawsuit that the proposed merger, which was announced in October 2022, would violate antitrust provisions in Colorado law that prohibit acquisitions that “may substantially lessen competition or tend to create a monopoly.” Weiser, following a months-long investigation, argued that the $24.6 billion merger of the nation’s second- and third-largest grocery store chains would eliminate competition and harm shoppers, workers and suppliers in Colorado, where Kroger and Albertsons control the first- and second-largest grocery chains. He also sought a penalty against the two companies for a “non-poaching” agreement they reached during a labor dispute and strike in 2022 stating that they would not hire each other’s employees or solicit each other’s customers. Washington state Attorney General Bob Ferguson filed suit against the combination in January and the Federal Trade Commission challenged the merger in late February on grounds it would reduce competition for shoppers and reduce wages for grocery store workers. Colorado sought a preliminary injunction to either stop the combination until its case was heard or a ruling that required the two companies to divest enough stores in Colorado to restore competition as existed before the proposed merger. Related Articles Retail | U.S.