Albertsons-Kroger Merger on Hold, Bunge-Viterra Merger Headed for EU Approval

Bloomberg’s Leah Nylen reported Thursday that “a Colorado judge issued an order temporarily blocking the proposed $25 billion merger of Kroger Co. and Albertsons Cos., which has been challenged by the state attorney general.”

“At a hearing in Denver on Thursday, Judge Andrew J. Luxen granted a preliminary injunction halting the deal and cancelled a hearing that was scheduled for Aug. 12. Instead, Luxen will oversee a two-week trial on the merits of the proposed tie-up beginning on Sept. 30,” Nylen reported. “The two supermarket operators agreed to delay closing their proposed deal until after the judge rules.”

Grocery Dive’s Catherine Douglas Moran and Sam Silverstein reported that “(Colorado Attorney General Phil) Weiser said the grocers’ agreement to pause their merger plans is ‘great news for shoppers, workers, farmers, and other suppliers, who can rest assured that this mega-merger will not go into effect during harvest season and while kids are headed back to school.'”

“Kroger and Albertsons are also facing a federal court hearing set to begin late next month in Portland, Oregon, during which a judge will decide whether to grant a request by the Federal Trade Commission for a preliminary injunction to stop the merger,” Moran and Silverstein reported. “Attorneys general for eight states and Washington, D.C., joined the FTC in its suit against Kroger and Albertsons. Colorado is not part of that group.”

“The supermarket companies, which currently run about 5,000 grocery stores between them, have proposed selling almost 600 locations in 18 states and Washington, D.C., to C&S Wholesale Grocers in an effort to reduce antitrust concerns surrounding their planned combination,” Moran and Silverstein reported.

Nylen reported that “Kroger and Albertsons say the merger is necessary for them to compete as consumers increasingly turn to larger, non-unionized rivals like Amazon.com Inc., Walmart Inc. and Costco Wholesale Corp. for groceries.”

Bunge, Viterra Merger Headed for Conditional EU Approval

Bloomberg’s Samuel Stolton reported Thursday that “Bunge Global SA’s planned $8.2 billion buyout of Viterra Inc. is set to be approved by the European Union after concessions offered by the firms look to have appeased regulator concerns.”

“The tie-up, announced in June last year, will see Bunge buy Glencore Plc-backed Viterra in stock and cash, with the US crop trader owning about 70% of the combined entity,” Stolton reported. “It would become the world’s second-biggest agricultural trading company by revenue, dominating the soybean and wheat markets.”

“Last month, the European Commission’s merger enforcers opened a preliminary investigation into the deal, and raised concerns over how the deal could impact competition in Poland and Hungary. Bunge offered commitments in response to the EU concerns, including divestments of all of Viterra’s crush and refining capabilities for certain oilseeds in the two countries,” Stolton reported. “Those remedies have won over EU officials who are likely to conditionally approve the deal by a current deadline of Aug. 1, according to people familiar with the matter who spoke on condition of anonymity.”

While the deal appears to be headed toward EU approval, Reuters’ Foo Yun Chee reported that “the deal has triggered concerns from the Canadian competition watchdog and farm groups. It requires regulatory clearance in North America, South America and China.”

More Deere Layoffs

The Des Moines Register’s Donnelle Eller reported that “Deere & Co., the Illinois manufacturer of iconic tractors and combines, said Wednesday it’s laying off salaried workers but wouldn’t say how many total would lose their jobs in Iowa and elsewhere.”

“The Moline ag giant notified Iowa Workforce Development Wednesday that 103 workers — 34 in Dubuque and 69 in Waterloo — were being laid off immediately,” Eller reported. “Deere cited the agricultural downturn for the cuts, pointing to projections that large farm equipment sales this year are expected to fall 20% to 25% below a year ago.”

“So far this year, Deere has cut about 1,830 workers in Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo and the Quad Cities’ Davenport and East Moline, Illinois, plants, as well as at an Urbandale research center,” Eller reported. “Deere says it employed about 22,600 salary and production workers in Iowa and the Quad Cities at the start of the year.”