Albertsons Demands Billions From Rival Kroger After Merger Bid Ends

Albertsons and Kroger officially terminated their $25 billion merger plan after courts blocked the deal.

Albertsons is seeking billions of dollars in damages from Kroger, as well as a $600 million termination fee. I Photo: Mike Kalasnik Wikimedia Commons

The fallout has led to a lawsuit from Albertsons, accusing Kroger of breaching the contract, Jody Godoy and Aishwarya Venugopal reported for Reuters.

The two-year effort to merge was criticized by regulators, who argued it would lead to higher prices for consumers. Albertsons alleges that Kroger failed to take "any and all actions" necessary to secure approval for the deal.

"Given the recent federal and state court decisions to block our proposed merger with Kroger, we have made the difficult decision to terminate the merger agreement," Albertsons CEO Vivek Sankaran said in a statement.

Albertsons is seeking billions of dollars in damages, as well as a $600 million termination fee. Kroger dismissed the claims as baseless, asserting it would defend against them in court.

"This is clearly an attempt to deflect responsibility following Kroger’s written notification of Albertsons’ multiple breaches of the agreement," a Kroger spokesperson said.

Kroger also stated that it had determined the merger was "no longer in its best interests," signaling the end of a contentious chapter between the two retail giants.