Closing arguments heard in trial against Kroger-Albertsons merger
DENVER, Colo. (KRDO) – Closing arguments were heard Thursday in the Colorado antitrust trial targeting what could be the largest supermarket merger in U.S. history.
The trial wrapped up after three weeks of testimony regarding the proposed $24.6 billion merger of Kroger and Albertsons.
In Colorado, Albertsons owns 103 Safeway stores and two Albertson stores; as part of the proposed merger, Kroger would obtain 14 of those locations. The remaining locations would be sold to a wholesale company named C&S Wholesale Grocers.
Colorado Attorney General Phil Weiser filed the lawsuit in February, aiming to block the merger and claiming that it would violate federal and state antitrust laws.
“Coloradans are concerned about undue consolidation and its harmful impacts on consumers, workers, and suppliers,” Weiser said in a press release announcing the lawsuit. “After 19 town halls across the state, I am convinced that Coloradans think this merger between the two supermarket chains would lead to stores closing, higher prices, fewer jobs, worse customer service, and less resilient supply chains.”
The Colorado Attorney General's Office argues that the merge would rid competition for Kroger, in turn raising grocery prices for Colorado consumers. The Office also argues that C&S is not prepared for a sale of this size.
The Colorado suit joins The Federal Trade Commission, as well as the attorney general in Washington, who also filed lawsuits against the merger earlier this year.
But Kroger CEO Rodney McMullen says that merging with rival Albertsons would allow them to decrease prices, in order to compete with retail giants like Walmart and Amazon.
“The day that we merge is the day that we will begin lowering prices,” McMullen previously said while under questioning by a lawyer representing his company.
A Denver district judge is now set to issue a ruling on the case, with a return date for a potential decision set for November 7th, according to our Denver news partners.
