A federal judge has blocked the planned mega-merger between Kroger and Albertsons, the parent company of Malvern-based Acme Markets, writes Steve Watkins for the Philadelphia Business Journal. 

U.S. District Court Judge Adrienne Nelson ruled in favor of the Federal Trade Commission by granting a preliminary injunction blocking the merger on Tuesday. Separately, Judge Marshall Ferguson blocked the merger later that day in a case filed by Washington state attorney general. 

The FTC sued to halt Kroger’s $24.6 billion acquisition in February on antitrust grounds. Its three-week-plus case ended on Sept. 17, with post-hearing briefings filed by each side on Sept. 27. 

The next step in the process would be for the case to be forwarded to an administrative hearing handled by the FTC, but Cincinnati-based Kroger sued in federal court to remove that step based on constitutional grounds. The administrative route often proves so time-consuming that companies typically abandon their merger plans, as the prolonged process renders the deal impractical. 

Despite Kroger also having the option of appealing the federal court ruling, the acquisition has now been terminated, with Albertsons suing the company for $600 million, blaming it for the collapse of the deal. 

Read more about the failed merger between Kroger and Albertsons in the Philadelphia Business Journal. 

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