Kroger, Albertsons $25 billion merger fraught with roadblocks
(Reuters) - The U.S. Federal Trade Commission (FTC) said on Monday it was suing to block Kroger's near $25 billion purchase of rival grocer Albertsons as it would eliminate "fierce competition."
The deal, which was announced in October 2022, has come under scrutiny from various lawmakers and consumer groups who have noted that the merger could drive up prices in the grocery sector making it difficult for customers during a highly inflationary period.
Here is a timeline of the major events that unfolded since the announcement of the deal:
Date Events
Oct. 14, Kroger says it will acquire rival Albertsons in
2022 a near $25 billion deal. The companies are
willing to divest some stores to ease anti-trust
concerns
Oct. 18, U.S. senators who scrutinize antitrust issues
2022 express "serious concerns" about the merger and
say they would hold a hearing in November
Nov. 2, The attorneys general of Washington D.C.,
2022 California and Illinois file a lawsuit in a
federal court seeking to block Albertsons' $4
billion dividend payout to shareholders before
the closing of the merger
Nov. 4, A state court in Washington temporarily blocks
2022 Albertsons from paying a $4 billion dividend to
shareholders
Nov. 8, A U.S. federal court denies requests to
2022 temporarily block Albertsons dividend payment.
However, the payment remains on hold due to the
block from a state court in Washington
Nov. 10, A state court in Washington to extend a
2022 temporary block that has prevented Albertsons
from paying the dividend. A hearing for Nov. 17
was set to further consider whether to prolong
the existing order
Nov. 16, The Washington state court postpones a scheduled
2022 case hearing to Dec. 9
Nov. 29, Skeptical lawmakers from across the political
2022 spectrum question executives at Kroger and
Albertsons amid concerns the tie-up could boost
already high food prices
Dec. 6, Kroger receives a request for additional
2022 information from the FTC as part of the
regulatory review process
Dec. 10, Albertsons says Washington State Court denied a
2022 request of preliminary injunction by the state's
Attorney General to prevent the company from
paying the special dividend and has extended the
existing temporary restraining order until Dec.
19
Dec. 16, Washington's state supreme court blocks
2022 Albertsons from paying a special dividend ahead
of its acquisition by Kroger and extends a block
put in place by a lower court
Dec. 21, The Washington Supreme Court to review on Feb. 9
2022 the state attorney general's appeal to
permanently stop the company's blocked $4
billion special dividend
Jan. 17, Washington state's highest court allows
2023 Albertsons to pay the $4 billion dividend
Jan. 19, Albertsons announces special dividend to be paid
2023 on Jan. 20
Aug. 16, Officials from seven U.S. states write to U.S.
2023 antitrust enforcers to ask for the proposed
Kroger-Albertsons merger to be stopped
Sept. 08, Kroger says it would sell over 400 grocery
2023 stores to C&S Wholesale Grocers in an effort to
get regulatory approval and says it may need C&S
to buy up to an additional 237 stores in certain
geographies to get regulatory nod
Oct. 12, California Attorney General Rob Bonta says his
2023 office was concerned about the deal and may sue
to stop it
Dec. 12, Six U.S. lawmakers write to FTC expressing their
2023 opposition to the merger
Jan. 15, Kroger and Albertsons say they plan to close the
2024 deal in the first half of Kroger's fiscal 2024
instead of early 2024
Jan. 16, Washington state's attorney general has sued to
2024 block the deal
Feb. 14, Colorado's attorney general files a lawsuit
2024 seeking to block the deal
Feb. 20, FTC and a group of states could sue as soon as
2024 next week to block the deal, Bloomberg News
reports
Feb. 26, FTC files an anti-trust lawsuit to block the
2024 deal
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh Kuber)
