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4w ago

Kroger and Albertsons Escalate Legal Battle Over Failed $25 Billion Merger

Kroger countersues Albertsons, alleging misconduct in regulatory efforts, as both companies seek damages following the merger's collapse.

The Albertsons logo is displayed at an Albertsons supermarket on Aug. 26, 2024 in Los Angeles, California. A federal judge in Oregon is hearing arguments today after the Federal Trade Commission and several states sued to block the planned merger between grocery chains Kroger and Albertsons. (Photo by Mario Tama/Getty Images)
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Overview

  • Kroger has filed a countersuit against Albertsons, accusing the company of secretly collaborating with C&S Wholesale Grocers to pressure for additional divestitures during regulatory reviews.
  • Albertsons is seeking billions of dollars in damages, including a $600 million termination fee, claiming Kroger failed to meet its obligations under the merger agreement.
  • Kroger denies Albertsons’ claims, asserting that it made every effort to secure regulatory approval and is seeking to recover investments made during the merger process.
  • The Federal Trade Commission and courts blocked the merger in December 2024, citing antitrust concerns and an inadequate divestiture plan involving C&S Wholesale Grocers.
  • Leadership changes at both companies, including the resignation of Kroger’s CEO Rodney McMullen and the upcoming retirement of Albertsons’ CEO Vivek Sankaran, add further uncertainty to their ongoing legal and strategic challenges.