Albertsons-Kroger Merger Nixed by Judge

The $24.6 billion merger between food giants Albertsons and Kroger was shut down by a Federal Judge. The action triggered a lawsuit by Albertsons against Kroger, alleging Kroger didn’t do enough to prepare itself for a merger that would meet legal and regulatory requirements.

Tom Moriarity, Alberton’s general counsel, said of the suit, “Kroger’s self-serving conduct, taken at the expense of Albertsons and the agreed transaction, has harmed Albertsons’ shareholders, associates and consumers. We are disappointed that the opportunity to realize the significant benefits of the merger has been lost on account of Kroger’s willfully deficient approach to securing regulatory clearance.”

Albertsons sues Kroger after Oregon, Washington judges block $24.6 billion merger – salemreporter.com
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On Wednesday, the day after a federal judge in Oregon and a state judge in Washington blocked a merger between two supermarket giants, Albertsons canceled the $24.6 billion merger agreement and sued Kroger.

The grocery chain, which owns 24 Albertsons locations and 97 Safeway stores in Oregon, sued Kroger in the Delaware Court of Chancery, alleging the larger grocer didn’t do enough to secure regulatory approval for its 2022 agreement to buy Albertsons.

The Federal Trade Commission, joined by seven states including Oregon and the District of Columbia, sued to block the merger in U.S. District Court in Oregon earlier this year, and a federal judge in Portland temporarily halted the merger Tuesday. A state judge in Washington state also blocked the merger from proceeding there. Both judges agreed with federal regulators and state attorneys general that the merger would lead to reduced competition and harm both customers and grocery workers — customers with higher prices and lower-quality goods and workers with lower pay.

The complaint Albertsons filed in the Delaware court isn’t yet public, but the company said in a press release that Kroger “willfully breached” the merger agreement by ignoring feedback from regulators, refusing to divest assets needed for antitrust approval or find stronger buyers for divested assets and failing to cooperate with Albertsons.