Kroger and Albertsons Merger: Illinois Court Blocks Merger, State's Attorney General Files Lawsuit
Illinois AG Sues to Block Kroger-Albertsons Merger
Illinois Attorney General Kwame Raoul has filed a lawsuit to block the proposed merger between Kroger and Albertsons, arguing that the deal would create a grocery monopoly in Illinois and harm consumers.
The lawsuit, filed in Cook County Circuit Court, alleges that the merger would violate Illinois antitrust laws and result in higher prices, reduced competition, and fewer choices for consumers.
Raoul is seeking an injunction to block the merger and other remedies, including the divestiture of stores in Illinois.
Court Blocks Kroger-Albertsons Merger in Illinois
On February 22, 2023, a Cook County judge issued a temporary restraining order blocking the Kroger-Albertsons merger in Illinois.
The judge ruled that the merger is likely to violate Illinois antitrust laws and cause irreparable harm to consumers in the state.
The order will remain in effect until the court holds a hearing on the state's lawsuit.
Kroger and Albertsons Respond to Illinois Lawsuit and Court Ruling
Kroger and Albertsons have responded to the Illinois lawsuit and court ruling, stating that they are disappointed and that they believe the merger is pro-competitive and in the best interests of consumers.
The companies have said that they will continue to work with the Illinois Attorney General's office to address any concerns and that they are confident that the merger will ultimately be approved.
The merger is still pending before the Federal Trade Commission (FTC) for review.
Outlook for Kroger-Albertsons Merger
The future of the Kroger-Albertsons merger is uncertain at this time.
The Illinois lawsuit and court ruling are significant setbacks for the deal, and it is unclear whether the merger will be able to overcome these challenges.
The FTC's review of the merger is also ongoing, and it is possible that the FTC will also block the deal.
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