Grocery giant Kroger has long drooled over acquiring Albertsons, for the simple reason that competition drives prices towards equilibrium and away from rent-seeking. When Kroger published the list of (Albertsons-owned) Jewel-Osco and (Kroger-owned) Mariano's stores that would remain open in Chicago, magically most of the Mariano's stores didn't make the cut—including the big one just 400 meters from my house.
Today, US District Court Judge Adrienne Nelson (I-OR) blocked the merger, probably killing it for good:
In a decision filed in Oregon federal court Tuesday, Nelson found in favor of the US Federal Trade Commission. The agency had argued that the proposed tie-up violates US antitrust law and that a divestiture of hundreds of stores to C&S Wholesale Grocers Inc. wouldn’t do enough to replace the lost competition.
Nelson’s decision is a major victory for the FTC and its outgoing Chair Lina Khan, who came under harsh criticism from conservatives and business groups for stepped-up antitrust enforcement under the Biden administration.
Ultimately, both chains will likely close some stores, but based on their own independent analyses aimed at comparative advantage, not based on a unified analysis aimed at rent-seeking. This is a good result.