Albertsons Takes Legal Action Against Kroger

Albertsons Companies Inc. has filed a lawsuit against Kroger Co., alleging breach of contract in their merger deal. The lawsuit claims that Kroger failed to exercise 'best efforts' and take 'any and all actions' to secure regulatory approval for the merger transaction.

Specific Allegations Against Kroger

According to Albertsons, Kroger violated the agreement by repeatedly refusing to divest assets necessary for antitrust approval, ignoring regulators' feedback, rejecting stronger divestiture buyers, and failing to cooperate. These actions, Albertsons argues, breached the terms of their merger agreement.

Impact on the Merger Deal

Albertsons is seeking billions of dollars in damages and has terminated the merger deal, entitling the company to an immediate $600 million termination fee. Earlier, a U.S. District Judge blocked the acquisition, stating that it would harm competition in the market.