This week, a federal judge blocked a proposed $20-billion merger between the U.S.’s two largest supermarket chains, Kroger and Albertsons. WSJ’s Patrick Thomas reports on what happened in the trial, why the two chains turned on one another and what’s next for the grocery business. Further Listening: - The Fight for 7-Eleven - Why the FTC is Challenging a $25 Billion Supermarket Merger Further Reading: - Albertsons Sues Kroger, Terminates Merger After Judge Blocks Supermarket Megadeal - Kroger-Albertsons Merger Blocked by Court, Handing Victory to Biden Antitrust Enforcers Learn more about your ad choices. Visit megaphone.fm/adchoices
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One of the biggest corporate dramas of the year played out recently inside a sweltering courtroom in Oregon. Our colleague Patrick Thomas was there covering the trial.
And you know, it's a smaller, a little bit of a smaller courtroom, not accustomed to these kind of high-profile antitrust trials. And it got really hot in that courtroom. I mean, it was, everybody's got to pack together in the back benches. And it was, yeah, it would get pretty toasty.
The case? The Federal Trade Commission was suing to block a merger between the country's two largest supermarket chains, Kroger and Albertsons.
At a high level, it was about the largest grocery store deal of all time. And if these two companies combining, we're going to mean higher food prices for consumers.
The deal would have been worth $20 billion, and it would have created a mega grocery store operator. This week, months after the FTC filed its suit, a judge finally ruled on the case.
The federal judge has blocked the merger of grocery giants Kroger and Albertsons after a three-week hearing. It's a deal that didn't check out.
And so you would think that the judge's ruling here, no, you cannot push through with this merger, would be the end of the story. But was it?
Of course not. Shortly after the judge made this decision, Albertsons decided they were going to sue Kroger for billions of dollars.
Welcome to The Journal, our show about money, business, and power. I'm Jessica Mendoza. It's Thursday, December 12th. Coming up on the show, the supermarket mega-merger that wasn't.
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