Trial over $25 billion Kroger, Albertsons merger will begin Monday

Colorado’s top lawyer is preparing to present his case at a trial set to begin Monday regarding why a $25 billion merger between Kroger and Albertsons should be rejected.

The trial, which will be held in Denver District Court, is scheduled to last up to three weeks. 

Colorado Attorney General Phil Weiser filed to stop the lawsuit in February, arguing the deal would decrease competition, ultimately hurting shoppers and workers. 

“When there’s a lack of competition, prices go up,” Weiser said in a Thursday news conference. “We benefit from competition.”

In July, Kroger and Albertsons announced 91 Colorado stores that would be sold under the merger if it is approved, several of which are on the Western Slope. The West Vail Safeway is one of the 91 stores on the list of 579 stores nationwide that would be sold.

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Weiser said Thursday that he believes the plan to sell hundreds of stores to C & S Wholesale Grocers to satisfy regulators is insufficient to compensate for the loss of competition. 

“C+S is a national distribution company with very few stores,” he said. 

The merger has hit roadblocks since it was first announced in 2022.

“It’s going to harm consumers, it’s going to harm workers, it’s going to harm farmers, it’s going to harm communities,” Weiser said of the deal.

Several other lawsuits over the merger are ongoing across the country, including cases in Oregon and Washington. The case in Oregon, filed by the U.S. Federal Trade Commission, concluded this week but a final ruling has not been announced. The Washington case is currently underway. 

Weiser said he will proceed with the case in Colorado until either a court deems the merger illegal or the two companies decide on their own to stop pursuing the deal.

Weiser hosted 19 meetings with residents across Colorado to hear their concerns about the merger, including several on the Western Slope. 

Weiser said he heard from Western Slope residents who were concerned that with fewer stores, supply chain disruptions could cause major issues in their communities. It would also take away the option for communities with two grocery stores, one owned by Kroger and one by Albertsons, to choose between any options. 

Kroger owns King Soopers and City Market while Albertsons owns Safeway. 

In an emailed statement, a spokesperson for Kroger said the company was pursuing the merger to help lower prices for customers and protect jobs.

“If the merger is blocked, grocery prices will be higher and the larger, non-union retailers Walmart, Costco and Amazon will become even more powerful and unaccountable,” according to the statement.