By Victor Swezey


Kroger and Albertsons have agreed to pause plans for their $25 billion merger until a Colorado court rules on the state's lawsuit to block the deal, according to the state's attorney general.

"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," Colorado Attorney General Phil Weiser said Thursday.

The deal between the two grocery-store operators has faced regulatory scrutiny since it was announced in October 2022, as the combination would give the combined company greater scale and increased leverage in negotiations with vendors.

In April, the companies agreed to sell more than 160 stores in a bid to appease competition regulators.


Write to Victor Swezey at victor.swezey@wsj.com


(END) Dow Jones Newswires

07-25-24 1240ET