Kroger and Albertsons: Merger Agreement Terminated Following Opposition From Federal Judge

The proposed $25 billion merger between no-moat supermarket behemoths Kroger and Albertsons was dealt a blow when the US District Court for the District of Oregon sided with the Federal Trade Commission in granting a preliminary injunction on Dec. 10. While the decision strikes us as unsurprising, we note that the ruling simply paused the merger rather than nixing it altogether. However, on Dec. 11, the potential combination was put to rest as Albertsons terminated its merger agreement and filed a lawsuit against Kroger.