Oregon judge does not give timeline on decision in Kroger, Albertsons case

The U.S. District Judge overseeing the Federal Trade Commission’s case against the Kroger, Albertsons merger said she would work as quickly as possible on her decision, reported the Cincinnati Enquirer.

Judge Adrienne Nelson heard closing arguments Tuesday in the federal case in Portland, Ore., involving the $24.6 billion grocery deal.

Nelson said she would take the case under advisement but did not offer a timeline for her ruling.

Meanwhile, both sides can submit final written arguments to the court by Sept. 27, which will be used by Nelson in her deliberation.

It’s one of three pending court cases that could help decide the fate of the mega-merger, with one just getting underway in Washington and another slated to begin at the end of the month in Denver. 

A Kroger attorney indicated at the beginning of the three-week trial that the merger would not happen if the grocer lost the all-important ruling, the Enquirer reported.

Market analysts agree. Eric Pettway, chief investment officer at Journey Advisory Group, told the Cincinnati Business Courier the market is anticipating the merger will not be approved, and if it is approved, Kroger will have to divest more stores.

During closing arguments on Tuesday, attorneys representing Kroger and Albertsons told Nelson grocery bills would go down and worker pay would increase if the merger is approved. They also assured no jobs would be lost and stores would not close.

The FTC contends the grocery marketplace needs Kroger and Albertsons to be separate entities for the sector to maintain good health. 

The two sides have reached an impasse on the definition of competition. The FTC said in its closing argument consumers depend on competition and pulling a grocer like Albertsons out of the equation would upset that dynamic. Shoppers need places to go where there are thousands of items under one roof, which takes specialized, smaller-format retailers like Trader Joe’s, Dollar General, and Aldi out of the equation due to their size and assortments.

Kroger and Albertsons believe the grocery industry is changing, and to stay profitable they must compete against retail giants like Amazon, Walmart, and Costco.

The FTC trial in Portland was the first of a series of trials lobbying against the Kroger, Albertsons merger. Washington state is in court this week taking on the merger, and Colorado will start its trial on Sept. 30.

There is also Kroger’s lawsuit against the FTC, alleging the agency’s internal proceedings are unconstitutional and saying it wants the merger’s merits decided in federal court. The lawsuit was filed in federal court in Ohio last month.