Albertsons this week said it is ending its proposed merger agreement with Kroger after two U.S. District Court judges, one in Washington and the other in Oregon, issued injunctions that blocked the plan.
The developments end, for now, any local concerns of Alamosa losing its longstanding Safeway store and keep the town with three main grocers in City Market, WalMart and Safeway to serve the San Luis Valley.
Colorado Attorney General Phil Weiser, who also filed a lawsuit in state court to block the planned merger, said the end of a Albertsons-Kroger marriage is a “victory for consumers, workers, and farmers.”
“All along, we have made the case that the Kroger/Albertsons merger is illegal and bad for Colorado. It is bad for grocery shoppers who are already feeling pinched at the checkout counter. It’s bad for workers and their job security and benefits. And it’s bad for farmers and other suppliers because there would be fewer local food options available at the store.”
Albertsons is now seeking a $600 million termination fee and billions of dollars in legal fees and lost shareholder value in its lawsuit against Kroger, according to The Associated Press. The company which owns Safeway has been facing a debt crisis and was looking to sell to Kroger in a deal worth $24.6 billion.
The Alamosa Safeway store was targeted to be sold as part of Albertsons deal with Kroger and end up in the hands of C&S Wholesale Grocers. With the merger off, Safeway remains with Albertsons, whose own future remains unknown.