Official announcement from either company or court records

Albertsons Ends $25 Billion Kroger Merger After Court Rulings, Sues for $600 Million Fee

Dec 11, 2024, 03:54 PM

Albertsons has terminated its proposed $25 billion merger with Kroger and is suing the rival grocery chain for breach of contract. The decision comes after two judges, including a federal judge in Oregon, halted the merger in separate cases, siding with the Federal Trade Commission's efforts to block the deal. Albertsons alleges that Kroger failed to exercise "best efforts" and take "any and all actions" necessary to secure regulatory approval for the acquisition. The lawsuit, filed in Delaware Court of Chancery, seeks damages, including a $600 million termination fee. Kroger has refuted the allegations, calling the lawsuit baseless and meritless, and claims that Albertsons breached the merger agreement. The planned merger, announced in 2022, would have been the largest grocery store merger in U.S. history, creating the country's biggest supermarket chain.