In a recent legal development, a U.S. District Judge in San Francisco reportedly dismissed an antitrust lawsuit against Kroger Co KR concerning its proposed $24.6 billion acquisition of Albertsons Companies, Inc. ACI.
The lawsuit, filed by a group of consumers, argued that the merger would reduce competition and increase grocery prices.
Judge Vince Chhabria, who presided over the case, cited a lack of sufficient information from the plaintiffs regarding how the merger would directly affect them, reported Reuters.
Related: Retail Giant Kroger Trims Identical Sales Outlook As Consumer Spending Tightens: Details
This ruling marks the second dismissal of the case by Chhabria, who nevertheless allowed for the possibility of refiling.
Kroger's acquisition of Albertsons, first announced in October 2022, has been scrutinized by the U.S. Federal Trade Commission (FTC), with calls to block the deal due to potential market monopoly concerns.
By revenue, Kroger is the largest grocer in the U.S., while Albertsons is the second-largest supermarket chain, as per the report.
The plaintiffs asserted that the acquisition could lead to adverse outcomes such as higher prices and poorer services. However, attorneys for Kroger and Albertsons have defended the merger, denying any breach of U.S. competition law and emphasizing the complementary nature of the two companies.
To mitigate antitrust concerns, Kroger has agreed to divest 413 stores and eight distribution centers to C&S Wholesale Grocers.
Price Action: KR shares closed higher by 0.04% at $45.02 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
