Judge says deal would cut direct competition between rivals
Kroger had argued deal would lower prices at Albertsons
Kroger shares jump, Albertsons stock falls

Dec 10 Reuters A U.S. judge blocked the pending 25billion merger of U.S. grocery chains Kroger KR.N and Albertsons on Tuesday, in a win for the Federal Trade Commission that Kroger has said would likely scuttle the deal.

The FTC argued at a threeweek trial in Portland, Oregon, that the merger would eliminate headtohead competition between the top two traditional grocery chains, leading to higher prices for shoppers and reduced bargaining leverage for unionized workers.

The ruling, which could be appealed, is a big victory for FTC Chair Lina Khan and President Joe Biden39;s administration in their bid to counter inflation at the checkout. Americans39; discontent over a lingering rise in grocery prices since the pandemic was a key theme in the runup to Presidentelect Donald Trump39;s win in November.

U.S. District Judge Adrienne Nelson agreed the merger was likely to remove direct competition between the two grocers, making it unlawful.

Separately on Tuesday, a Washington state court judge in Seattle also ruled to block the merger in a case brought by Attorney General Bob Ferguson, who had estimated half of all supermarkets there are owned by one of the two chains.

Albertsons shares closed down 2.3. Kroger shares closed up 5.1.

The White House said after the ruling they were proud to stand up against big…