The Federal Trade Commission (FTC) filed a lawsuit in February to block Kroger Company’s $24.6 billion acquisition of Albertsons Companies Inc. She claimed the deal would result in “higher prices for food and other essential household items for millions of Americans.”

The defendants had argued that the merger was necessary because supermarkets faced increasing competition from retail groups such as Walmart, Amazon and Costco. Although Kroger and Albertsons predicted the merger would result in $500 million in cost savings – at least some of which would be passed on to consumers – U.S. District Judge Adrienne Nelson rejected the argument that the sale of 579 stores to C&S Wholesale Grocers would replace the lost competition.

Kroger and Albertsons hoped to allay the FTC’s concerns by agreeing to divest 579 stores, including Albertsons of Taos, in a sale to C&S Wholesale Grocers, LLC.

In an emailed statement to the Taos News, an Albertsons spokesperson wrote: “On December 11, 2024, Albertsons exercised its right to terminate the merger agreement with Kroger. As a result, stores previously selected for divestiture to C&S Wholesale Grocers will continue to be operated by Albertsons Companies.”

Regarding the lawsuit, the Albertsons spokesperson noted, “Kroger willfully violated the merger agreement in multiple ways, including by repeatedly refusing to divest assets required for antitrust approval, ignoring feedback from regulators, rejecting stronger divestiture buyers, and not.” to work with Albertsons.”

In a Dec. 11 statement, Kroger denied Albertsons’ allegations, “particularly in light of Albertsons’ repeated intentional material breaches and interference throughout the merger process, which we will prove in court.”

Albertsons’ complaint against Kroger is temporarily sealed under Delaware Court of Chancery rules.