DENVER — First announced over a year-and-a-half ago, the Kroger-Albertsons merger deal continues to face backlog, with the most recent delay announced July 25, as the companies agreed to halt closing on their $25 billion deal. The megaretailers will pause their merger until five days after the Denver District Court rules on the merits of an antitrust case centered around the acquisition.

Colorado Attorney General Phil Weiser filed the lawsuit on behalf of the state against the two retail giants in February, seeking a permanent injunction to keep the companies from consummating their proposed merger. At the same time, the state filed for a preliminary injunction to maintain the status quo of the businesses.

In its complaint, the state alleged the proposed merger violates its antitrust act, posing a threat to competition. With Kroger and Albertsons functioning as two of the largest retailers in Colorado, they account for over half of all supermarket sales in the state. Colorado believes a merger would lead to higher prices, reduced choices, lower quality for consumers and harm to workers and suppliers.

“I am pleased that Kroger and Albertsons agreed to halt their plans to merge until the court rules on the state’s lawsuit to permanently block the grocery merger,” Weiser said. “This is great news for shoppers, workers, farmers and other suppliers, who can rest assured that this megamerger will not go into effect during harvest season and while kids are headed back to school.”

Looking to finalize its deal, Kroger and Albertsons requested an accelerated trial on merits, which the court granted against the state’s objection.

The court originally scheduled an evidentiary hearing on Colorado’s motion for preliminary injunction on Aug. 12 and a trial on the merits on Sept. 30. However, to consolidate the hearings, the court cancelled the August date while upholding the scheduled trial in September.

“Today’s decision is welcome news, as it eliminates the need for a preliminary injunction hearing in Colorado that was previously scheduled to begin Aug. 12,” said a Kroger and Albertsons spokesperson following the court’s decision. “The hearing on the state’s request for a permanent injunction will go forward as scheduled on Sept. 30. We look forward to defending in court how the combination of Kroger and Albertsons will provide meaningful, measurable benefits, including lower prices and more choices for families across the country and more opportunities for stable, well-paying union jobs.”

Earlier in July, Kroger and Albertson stated it would divest from 579 stores across 18 states and Washington, DC.

Originally, the merger would lead to a $210 billion revenue-generating company with 4,996 stores, 66 distribution centers, 52 processing plants, 3,972 pharmacies, 2,015 fuel centers and 710,000 employees in 48 states and the District of Columbia.

Kroger initially set out to acquire Albertsons Cos. in October 2022, with a projection to finalize the deal by early 2024 that has been stalled for regulatory clearance.

During Feb. 2024, US Federal Trade Commission on Feb. 26 sued to block the merger of Kroger and Albertsons Cos.