The proposed merger between supermarket giants Kroger and Albertsons floundered on Tuesday after judges overseeing two separate cases both halted the deal, according to the Associated Press.
U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the merger Tuesday after holding a three-week hearing in Portland, Oregon. Later Tuesday, Judge Marshall Ferguson in Seattle issued a permanent injunction barring the merger in Washington after concluding it would lessen competition in the state and violate Washington’s consumer protection laws.
Albertsons announced it is giving up on its merger with Kroger as a result and is suing the Kroger, saying it didn’t do enough to secure regulatory approval for the $24.6 billion agreement.
Kroger and Albertsons in 2022 proposed what would be the largest grocery store merger in U.S. history. The companies said a merger would help them better compete with big retailers like Walmart, Costco, and Amazon.
Kroger and Albertsons currently operate in 22 states.
