Federal judge temporarily blocks Kroger’s $25 billion merger with Albertsons

A federal judge blocked the Kroger-Albertsons merger, siding with the FTC's antitrust lawsuit. The FTC argued the merger would reduce competition, leading to higher prices and weaker worker bargaining power. The judge agreed, finding the merger likely to eliminate direct competition between the two major grocery chains. Albertsons' stock fell, while Kroger's rose following the ruling. The FTC celebrated the decision as a victory for consumers and workers. Kroger contended the merger would lower prices through cost savings and increased efficiency. Kroger and Albertsons planned to address competition concerns by divesting certain stores. The merger would have created a grocery giant with approximately 5,000 stores nationwide. Unions and several states opposed the merger due to concerns about job losses and reduced competition.