Albertsons Sues Kroger for Breach of Contract in Failed Deal [View all]
Source: Bloomberg
December 11, 2024 at 8:41 AM EST
Updated on December 11, 2024 at 8:59 AM EST
Albertsons Cos. said it filed a lawsuit against Kroger Co., claiming it failed to exercise “best efforts” and take “any and all actions” needed to secure regulatory approval for the companies’ proposed $24.6 billion deal.
Albertsons said in a statement that it’s seeking “billions of dollars in damages from Kroger to make Albertsons and its shareholders whole.” In addition to a $600 million termination fee, the grocery chain wants compensation for the “multiple years and hundreds of millions of dollars it devoted to obtaining approval for the merger.”
Kroger and Albertsons had agreed to the tie-up in October 2022, saying it would help them compete better against Amazon.com Inc., Walmart Inc. and other bigger rivals. But the deal was blocked by a federal judge on Tuesday over concerns that it would lessen competition for US grocery shoppers.
Albertsons said Wednesday that Kroger “willfully” breached the merger agreement by refusing to divest assets needed for antitrust approval, ignoring feedback from regulators and rejecting stronger divestiture buyers, among others. Albertsons said it was exercising its right to terminate the deal. Chief Executive Officer Vivek Sankaran said the grocer is disappointed and starting a new chapter with a strong record after investing in its core business and other areas.
Read more: https://www.bloomberg.com/news/articles/2024-12-11/albertsons-sues-kroger-for-breach-of-contract-over-scuttled-deal
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I shop at Acme here in Philly and keep forgetting they are owned by Albertsons.
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