Albertsons Seeks Over $8 Billion in Damages From Kroger Over Failed Merger

US grocery chain Albertsons Companies began presenting its case against rival Kroger on Monday, seeking more than $8 billion in damages over the collapse of their proposed $24.6 billion merger in 2024. Albertsons alleges that Kroger failed to fulfil its contractual commitment to secure regulatory approval by refusing to divest enough stores. The company is seeking up to $6.88 billion in lost shareholder premiums, a $600 million termination fee and more than $1 billion in tax adjustments.

The two-week bench trial is being held at Delaware’s Court of Chancery before Vice Chancellor Lori Will. Albertsons claims Kroger prioritised protecting profitability over satisfying regulators, despite an alleged obligation to consider selling up to 650 stores. Kroger, however, argues that it fulfilled its contractual responsibilities and that regulatory opposition ultimately derailed the deal. The merger, announced in 2022, was intended to strengthen the companies’ competitiveness against major retailers such as Walmart, Costco, Amazon and Aldi, but federal and state courts blocked it in December 2024 over concerns about reduced competition and higher grocery prices.

Kroger has maintained that its substantial investment of more than $1 billion and extensive efforts to complete the merger demonstrate that it did not deliberately breach the agreement. It also argues that Albertsons is not entitled to the termination fee, alleging that the latter undermined negotiations over the proposed store divestitures. Albertsons has rejected allegations of improper conduct by its current CEO, Susan Morris, who may testify alongside former executives of both companies. The trial comes as Albertsons reviews its costs and Kroger plans corporate job cuts and increased technology investment, highlighting the ongoing challenges facing both grocery chains.

Pic Courtesy: google/ images are subject to copyright