Albertsons Sues Kroger After Proposed $24.6 Billion Merger is Blocked
Just one day after a U.S. District Court judge issued a preliminary injunction blocking the merger between Albertsons and Kroger, Albertsons backed out of the proposed deal and turned around and filed a lawsuit against Kroger, accusing Kroger for not doing enough to help get regulatory approval for the merger.
The $24.6 billion agreement between the two grocery chains, which was proposed in 2022, was blocked on Tuesday, Dec. 10, by U.S. District Court Judge Adrienne Nelson after a three-week hearing in Portland, Ore. Then a judge in Washington state issued a permanent injunction that barred the merger in that state, concluding it would lessen competition and violate consumer-protection laws.
The Federal Trade Commission (FTC) sued to block the merger earlier this year, citing the potential for higher prices for goods and lower wages for workers, as well as what it called an inadequate plan to divest 579 stores to C&S Wholesale Grocers.
The lawsuit filed by Albertsons on Dec. 11 claims Kroger failed to exercise “best efforts” and take any and all actions to secure regulatory approval, according to an Associated Press report. Albertsons’ general counsel called Kroger’s actions “self-serving conduct” in a statement to the AP.
In a news release responding to the lawsuit, Kroger refuted the allegations “in the strongest possible terms,” calling Albertsons’ claims “baseless and without merit,” and further saying that Albertsons was attempting to deflect responsibility “and to seek payment of the merger's break fee, to which they are not entitled.”
