Kroger and Albertsons have agreed to temporarily halt their $20 billion merger while they face legal challenges from antitrust regulators.
The move comes after Colorado Attorney General Phil Weiser filed a lawsuit in February to block the deal.
The suit claims the merger would stifle competition and negatively impact consumers, workers, and suppliers.
The Federal Trade Commission (FTC) also filed a lawsuit in Oregon, claiming the merger would raise food prices and weaken workers’ negotiating power.
A federal court is to review the FTC’s request for an injunction on August 26, which could affect the deal before Colorado’s trial starts on September 30.
Kroger’s spokeswoman said the temporary injunction has removed the need for a scheduled hearing in Colorado.
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The merger, announced in October 2022, would merge the top two supermarket chains in the US, positioning them to better compete with giants like Amazon and Walmart.
The companies argue the deal would also support unionized supermarkets.
Kroger and Albertsons have pledged to divest over 160 stores to address regulatory concerns, with a revised plan to sell 579 stores to C&S Wholesale Grocers.
The combined entity would manage about 5,000 stores if approved, and the deal’s total value would reach approximately $25 billion.
