Official announcements or press releases from Albertsons

Albertsons Terminates $24.6B Merger with Kroger, Sues for $600M Termination Fee

Dec 12, 2024, 11:17 AM

Albertsons has terminated its proposed $24.6 billion merger with Kroger, the largest supermarket merger in U.S. history, and filed a lawsuit against Kroger for breach of contract. The decision came a day after federal and state judges blocked the merger, citing anti-competitive concerns. Albertsons alleges that Kroger failed to make sufficient efforts to secure regulatory approval, including not divesting necessary assets and ignoring feedback from regulators. Kroger refutes these claims, stating that Albertsons was responsible for multiple breaches of the agreement. Albertsons is seeking a $600 million termination fee, while Kroger announced a $7.5 billion share buyback program. The merger aimed to help Kroger and Albertsons better compete with big retailers like Walmart, Costco, and Amazon. The Federal Trade Commission (FTC) and several states had sued to block the merger, arguing it would raise prices and lower workers' wages by eliminating competition.