A U.S. District Court in Oregon blocked Kroger's $25 billion merger with Albertsons, citing FTC concerns about market consolidation and consumer harm. Judge Adrienne Nelson ruled the merger would diminish competition, harm consumers, and weaken workers' bargaining power. Both companies expressed disappointment. The FTC celebrated the decision as a win for consumers, emphasizing its impact on millions reliant on these supermarkets. Kroger argued that the merger was vital to compete with major retailers like Walmart, but the court deemed supermarkets to be a distinct market that required oversight. Kroger shares rose 5%, while Albertsons fell 2%.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. District Court in Oregon blocked Kroger's $25 billion merger with Albertson's,
00:07citing FTC concerns about market consolidation and consumer harm. Judge Adrian Nelson ruled the
00:13merger would diminish competition, harm consumers, and weaken workers' bargaining power. Both
00:19companies expressed disappointment. The FTC celebrated the decision as a win for consumers,
00:24emphasizing its impact on millions relying on those supermarkets. Kroger argued the merger
00:29was vital to compete with major retailers like Walmart, but the court deemed supermarkets at
00:33a stick market requiring oversight. Kroger's shares rose 5% while Albertson's fell 2%.