The proposed merger between Albertsons Companies and Kroger faced opposition from customers and unions, causing a delay in the process.
The merger was rejected by the International Brotherhood of Teamsters on Monday, and the plea is currently being reviewed by the Federal Trade Commission.
The Teamsters, who represent more than 22,000 members in the stores and facilities of both companies in the U.S., objected to the merger after engaging in discussions with the companies for months to safeguard the fundamental interests of their employees.
Lawsuits were filed by customers of two grocery chains last week to prevent their merger, citing concerns about potential reduction in community grocery stores, resultant price hikes, and decreased food accessibility for all.
The $25 billion merger deal was officially rejected by United Food and Commercial Workers International Union (UFCW), the largest private sector union in the U.S., and its 1.3 million members last month.
The proposed merger between Kroger and Albertsons has raised concerns about its impact on essential workers, communities, and customers. UFCW International President Marc Perrone has expressed opposition to the merger due to a perceived lack of transparency.
Kroger and Albertsons announced a merger in October 2022 with the goal of establishing a national presence.