The U.S. Federal Trade Commission’s effort to halt the $24.6 billion merger between Kroger Co. (NYSE:KR) and Albertsons Companies Inc (NYSE:ACI) is reportedly slated for trial in Oregon at the end of August.
U.S. District Judge Adrienne Nelson set the trial to commence on August 26 in Portland, anticipated to span two to three weeks, reported Bloomberg.
The merger, if approved, would mark the largest deal in U.S. grocery history.
The FTC, backed by eight states and Washington D.C., alleges the merger would adversely impact worker wages and consumer prices.
Kroger and Albertsons argue it’s necessary to compete with major non-union competitors like Amazon.com Inc (NASDAQ:AMZN), Walmart Inc (NYSE:WMT), and Costco Wholesale Corporation (NASDAQ:COST).
The companies propose significant investments to mitigate concerns, including $500 million to lower prices and $1 billion for worker wages and benefits.
However, the FTC deems their divestment plan inadequate, urging for further concessions.
Kroger and Albertsons, collectively operating nearly 5,000 supermarkets nationwide, contend that blocking the merger would disadvantage consumers and workers while bolstering larger rivals.
Price Action: KR shares closed lower by 1.75% at $54.99 on Monday.
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