Supermarket chain Kroger plans to lower grocery prices by $1 billion after the completion of its proposed $25 billion merger with smaller rival Albertsons, a company spokesperson said on Thursday.

Kroger had previously promised to lower grocery prices by $500 million at Albertsons locations.

Bloomberg News first reported the development earlier in the day.

The supermarket mega-merger, first announced in October 2022, was expected to create a grocery empire with more than 4,000 stores. But the deal has faced several antitrust lawsuits over concerns that it would push up grocery prices. Washington State's attorney general was the first to challenge.

The proposed merger was halted last month pending a Colorado District Court ruling on a lawsuit filed to block the deal. The trial is set to begin on Sept. 30, State Attorney General Phil Weiser had said.