Illustration: Sarah Grillo/Axios
A three-week trial pitting would-be partners Kroger and Albertsons against the Federal Trade Commission has concluded.
Why it matters: An injunction on the deal would effectively kill it.
The latest: U.S. District Judge Adrienne Nelson, presiding over the case, promised to "work as quickly as possible." It will likely take about a month for a decision, former FTC policy director David Balto posits to Axios.
- The sides have until Sept. 27 to submit final written arguments.
Between the lines: Much of the case hinges on the grocery market definition, which, in turn, will determine what their market share and competitive advantage would be were they to combine.
- Even the FTC acknowledges Walmart and Target could be considered competitors.
- Whereas Kroger and Albertsons' argument that retailers like drug stores and convenience stores should also be considered could be on shakier ground, given historic precedence.
Zoom out: Also at play are the merger's impact on labor, and whether the proposed divestiture is an adequate remedy.
💠Our thought bubble: Grocery chains like Aldi, Trader Joe's and Costco are likely to present a competitive threat, but it remains to be seen whether that will impact the judge's ruling.
What we're watching: Albertsons has said if the merger does not go through it will have to figure out how to compete on its own, while implying it will still need to find a buyer.
