US EditionKroger countersues rival Albertsons after demise of $25 billion merger
- Kroger Co. Is fighting back against a lawsuit brought by Albertsons Cos. In the Delaware Court of Chancery, case number 2024-1276, related to Kroger's failed $24.6 billion takeover of Albertsons after US antitrust enforcers blocked the deal last year.
- The lawsuit stems from Albertsons seeking billions of dollars in damages, including a $600 million termination fee, after the proposed merger, first proposed in 2022, was blocked due to antitrust concerns raised by the FTC and other regulators.
- Kroger is seeking damages from Albertsons for money spent trying to obtain regulatory approval, arguing that Albertsons undermined the deal by secretly working with C&S to pressure Kroger to divest more stores and compiling a litigation record against Kroger in anticipation of the deal failing.
- According to Albertsons' spokesman on Tuesday, Kroger's weak claims are a tactic to distract from Kroger's failures to carry out its contractual obligations under the deal agreement, avoid paying the damages it owes and its ongoing executive leadership issues, and Kroger stated that, as a result of its misconduct, Albertsons is not entitled to the $600 million termination fee nor is Albertsons entitled to the other damages it seeks.
- Following the blocked merger and Albertsons' lawsuit, Albertsons announced that CEO Vivek Sankaran would retire and Susan Morris would take his role effective May 1, while Kroger replaced Rodney McMullen as CEO in March after an investigation into his personal conduct, indicating significant management changes within both companies.
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Kroger throws latest punch in legal battle with Albertsons
The legal battle between Kroger and Albertsons is heating up. Kroger countersued Albertsons on Tuesday, denying claims that it was to blame for the collapse of the proposed $25 billion merger late last year. Kroger said in a statement on Tuesday that it was "working diligently to seek regulatory approval and close the merger" and claimed that "Albertsons was engaging in a secret and misguided campaign, together with C&S Wholesale Grocers, the di…
Albertsons sued Kroger when merger broke up. Now it’s Kroger’s turn. What it alleges
Albertsons and Kroger spent over two years and more than $850 million on an unsuccessful effort to merge. The two supermarket giants are now spending additional money fighting over the fallout.Kroger filed a countersuit Tuesday against Albertsons over the bitter end to its planned acquisition of the Boise-based grocery chain. Albertsons had called off its $24.6 billion proposed sale and sued its larger rival for breach of contract the morning af…
Kroger countersues rival Albertsons after demise of $25B merger
Grocery chain Kroger countersued rival Albertsons on Tuesday, escalating a legal fight between the two companies following the demise of their proposed $25 billion merger that was blocked by courts in December.
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