Grocery store chain Albertsons officially ended its nearly $25 billion merger agreement with competitor Kroger on Wednesday, following a federal judge’s decision to block the deal. Albertsons has since filed a lawsuit against Kroger, accusing the company of failing to secure regulatory approval for the merger.…
In the lawsuit filed in the Delaware Court of Chancery, Albertsons claims Kroger breached the contract by not making the necessary efforts to obtain antitrust approval. The allegations include Kroger’s refusal to divest assets, ignoring regulatory feedback, rejecting potential buyers for divested assets, and not cooperating with Albertsons.…
Kroger has denied these accusations, stating that Albertsons repeatedly breached the merger agreement and interfered with the process. Kroger asserts that it will prove its case in court.…
U.S. District Judge Adrienne Nelson issued a preliminary injunction against the merger, siding with the Federal Trade Commission (FTC). The FTC argued that the merger would reduce competition, as Kroger and Albertsons are significant competitors in the grocery market.…
Kroger had proposed selling 579 stores to C&S Wholesale Grocers to address antitrust concerns, but Judge Nelson rejected this solution. The FTC, along with eight states including California and Illinois, argued that the merger would limit consumer choices in an already challenging market with rising food prices.