FTC to Block Purchase of Winn-Dixie Stores

Kroger Co.’s plan to buy 74 supermarkets from Winn-Dixie Stores Inc. was challenged by the Federal Trade Commission, which said the merger would eliminate direct competition in Fort Worth. By a 5-0 vote, the FTC authorized its lawyers to seek a preliminary injunction from a federal judge in Dallas to block the purchase of the Texas and Oklahoma stores. The combination would give Kroger, the nation’s largest supermarket chain, a 33% share of the retail grocery market in the Fort Worth area, an FTC spokesman said. If the case goes to court, it would be the first legal test of the FTC’s stricter standards for reviewing supermarket mergers. The last time the agency went to court to block a supermarket combination was in 1989. Jacksonville, Fla.-based Winn-Dixie closed off 19 cents at $15.81, while Kroger fell $1.19 to close at $19, both on the New York Stock Exchange. Kroger didn’t disclose how much it offered to buy the Winn-Dixie stores.

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