crossorigin="anonymous"> Albertsons sued Kroger after a judge ruled against the grocery merger. – Subrang Safar: Your Journey Through Colors, Fashion, and Lifestyle

Albertsons sued Kroger after a judge ruled against the grocery merger.


Traders work as Kroger Company and Albertsons Companies Inc. trade information displays on the floor of the New York Stock Exchange on October 14, 2022.

Brandon McDermid | Reuters

The Albertsons formally scrapped its proposed $25 billion merger on Wednesday. Kroger and sued its supermarket competitor, saying Kroger breached its contract and did not follow through on promises to help get the deal approved.

It comes one day. After the judge is blocked planned contract.

In a news release, Albertsons said Kroger breached its merger agreement by “repeatedly refusing to divest assets required for antitrust approval, ignoring feedback from regulators, rejecting strong divestiture buyers.” and failing to cooperate with Albertsons.”

“Kroger’s self-serving behavior at the expense of Albertsons and the agreed transaction has harmed Albertsons shareholders, associates and customers,” Albertsons general counsel and chief policy officer Tom Moriarty said in a statement. “We are disappointed that the opportunity to realize the significant benefits of the merger has been lost due to Kroger’s deliberate laxity in obtaining regulatory clearance.”

In a statement, Kruger called the allegations in the lawsuit “baseless and without merit.”

“This is clearly an attempt to disclaim liability following Kroger’s written notification of multiple breaches of the agreement by Albertsons, and to seek payment of the merger break fee,” the company said in a statement. Which they don’t deserve.”

Kroger about two years ago Announced plans to buy Albertsons. And gather forces to stop it. Walmart, Amazon And Costco. The deal will bring about 40 supermarket chains, including Kroger’s Fred Meyer and Albertsons Safeway, under a single company.

Wednesday’s lawsuit is akin to a corporate divorce battle.

The companies are conflicted about who should pay the legal fees associated with the merger and who, if anyone, is responsible for paying the breakup fees.

Albertsons said in its news release that it owes both a $600 million termination fee and “relief that reflects the years and hundreds of millions of dollars it devoted to getting the merger approved, this as well as the Albertsons’ unnecessary limbo extension period. The result of Kroger’s actions.”

Kroger, on the other hand, pushed back against the payments to Albertsons in a statement, saying it “looks forward to responding to these baseless claims in court.”

Shares of Albertsons and Kroger rose 0.5% and 1%, respectively, in early trade on Wednesday.

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