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FTC to halt Kroger deal
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June 2, 2000: 5:48 p.m. ET
FTC fears No. 1 food chain's buy of Winn-Dixie stores uncompetitive
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NEW YORK (CNNfn) - The Federal Trade Commission aims to halt the purchase of 74 Winn-Dixie grocery stores by Kroger Co., the largest U.S. supermarket chain, the commission announced Friday.
The FTC voted 5-0 to request a preliminary injunction in a U.S. District Court in Dallas to block Kroger's plans to acquire 74 Winn-Dixie supermarkets in Texas and Oklahoma, a deal that was announced last November.
Kroger, with $45 billion in revenue last year, operates more than 2,300 supermarkets and department stores, 796 convenience stores, 389 jewelry stores and 42 food-processing plants throughout the United States.
The agency opposes the purchase because it would "combine Fort Worth's second- and third-largest supermarket chains to create a dominant firm in Fort Worth," said Richard Parker, director of the FTC's Bureau of Competition.
Shortly after the FTC's decision, Paul Heldman, Kroger's senior vice-president and general counsel expressed the company's disappointment at the news.
 "We continue to believe that this transaction would benefit customers in Texas and southern Oklahoma who would be offered the benefits of Kroger's superior selection, service and value in this aggressively competitive market," Heldman said. "We intend to explore our legal alternatives."
The news comes on the same day that Jacksonville, Fla.-based Winn-Dixie said it planned to buy nine out of 12 supermarkets in the Orlando, Fla., area that are owned by the privately held supermarket company Gooding's. Winn Dixie (WINN: Research, Estimates) announced a massive restructuring plan in April that included eliminating 11,000 jobs and selling 114 of its stores.
Shares of Cincinnati-based Kroger (KR: Research, Estimates) slipped 1-3/16 to 19 in trading Friday.
Shares of Winn-Dixie fell 3/16 to close at 15-13/16 Friday. 
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Kroger
Winn-Dixie
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