In this article, Albertsons officially ended its proposed $25 billion merger with Kroger and filed a lawsuit against its rival, accusing Kroger of breaching the contract and failing to fulfill commitments to facilitate the deal’s approval. The termination came after a judge halted the planned merger. Albertsons stated that Kroger violated the merger agreement by not divesting necessary assets for antitrust clearance, disregarding regulators’ input, rejecting stronger divestiture buyers, and not cooperating with Albertsons.
Albertsons’ General Counsel and Chief Policy Officer, Tom Moriarty, expressed disappointment over the lost opportunity for the merger’s benefits due to Kroger’s actions. In response, Kroger dismissed the allegations in the lawsuit as unfounded and claimed that Albertsons breached the agreement multiple times. The proposed merger between Kroger and Albertsons, announced about two years ago, aimed to unite against competitors like Walmart, Amazon, and Costco, consolidating nearly 40 supermarket chains under one entity.
The legal dispute between the companies revolves around issues such as payment of legal fees related to the merger and the breakup fee. Albertsons asserted its right to a $600 million termination fee and compensation for the time and resources spent on obtaining merger approval. Kroger disputed these claims and stated its intention to address the allegations in court. Both Albertsons and Kroger saw slight increases in their stock prices in early trading on Wednesday.
