Albertsons Demands Kroger Pay Over $9 Billion Amid Failed Merger

3-line summary

• Albertsons is demanding Kroger pay more than $9 billion over their collapsed $24.6 billion merger, arguing in Delaware Chancery Court that Kroger willfully breached the merger agreement by refusing to revise its divestiture plan to satisfy antitrust concerns, according to Investing.com.
• The demand comprises the premium shareholders would have received had the deal closed, a $600 million termination fee, $75 million in interest, and other costs. A federal court blocked the merger in December 2024, siding with the FTC that the planned sale of hundreds of stores to C&S Wholesale Grocers did not adequately address antitrust concerns; Albertsons then terminated the agreement and sued.
• A two-week trial before Judge Lori Will is set for later this month. Kroger disputes the claims, saying it made every effort to win approval and accusing Albertsons of colluding with C&S to push regulators toward demanding more store sales than necessary; C&S said its conduct met all contractual, legal and ethical obligations.

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