Court rulings or official announcements from Albertsons or Kroger

Albertsons Terminates $25 Billion Merger with Kroger, Sues for Breach Amid Antitrust Concerns

Dec 11, 2024, 01:38 PM

Albertsons has terminated its $25 billion merger agreement with Kroger following court injunctions from both a federal judge and a Washington state judge, which halted the deal. The termination came after Albertsons accused Kroger of failing to exercise 'best efforts' to secure regulatory approval for the proposed merger. In response, Albertsons has filed a lawsuit against Kroger, seeking billions of dollars in damages for breach of the merger agreement, citing Kroger's failure to address antitrust concerns and secure regulatory approval. Additionally, Albertsons has authorized a $2 billion share buyback program and intends to increase its quarterly dividend by 25% to $0.15 per share. The courts' decisions were based on concerns that the merger would curtail competition for grocery shoppers, potentially leading to higher prices, reduced consumer choice, and lower wages.