Kroger's $25 billion acquisition of Albertsons was blocked, marking a win for the FTC

• Kroger's proposed $24.6 billion acquisition of Albertsons was blocked by a federal judge.
• The judge agreed with the FTC that the merger would weaken competition for US grocery shoppers.
• The acquisition would be the largest supermarket merger in US history.

Kroger's $24.6 billion proposed acquisition of Albertsons was blocked by a federal judge on Tuesday, marking a win for the Federal Trade Commission that could ultimately sink the deal.

US District Judge Adrienne Nelson in Oregon found the acquisition would weaken competition for US consumers, agreeing with the FTC's arguments that it would violate anti-trust laws. 

In a statement provided to Business Insider following the ruling, Albertsons said it was disappointed by the ruling.

"We believe we clearly outlined during the proceedings how the proposed merger would expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers' shopping experience," the statement said. "We are carefully reviewing the Court's opinion and are evaluating our options in accordance with the merger agreement."

Kroger did not respond to a request for comment from BI.

Lawyers for the companies previously said the deal would likely be called off if the judge ruled against it. 

"This merger will not occur if this injunction is in place," Matthew Wolf, an attorney for Kroger, previously said in court.

The acquisition would be the largest supermarket merger in US history. In its efforts to block the acquisition the FTC said the deal would reduce competition as well as lead to higher prices for US grocery shoppers and lower wages for workers.

"Kroger and Albertsons are two of the largest supermarket chains in thousands of local communities throughout the country," the FTC lawsuit said. "In hundreds of those communities, the proposed acquisition would create a single supermarket with market shares so high as to be presumptively unlawful under the antitrust laws."

The companies argued the acquisition would allow Kroger to compete with retail giants like Walmart, Costco, and Amazon. They also said the deal would lead to lower prices for some consumers, citing higher prices at Albertsons stores compared to Kroger.

The judge's decision also marked a win for FTC Chair Lina Khan, who has led aggressive anti-trust efforts against large corporations.