Albertsons formally terminated its proposed $25 billion merger agreement with Kroger on December 11, 2024, following the U.S. court's decision to block the deal. Albertsons simultaneously filed a lawsuit against Kroger, alleging breach of contract.
Albertsons claims Kroger violated the merger agreement by failing to exert 'best efforts' to secure regulatory approval, specifically by repeatedly refusing to divest necessary assets and ignoring regulators' feedback. Albertsons is seeking a $600 million termination fee and other damages.
Kroger responded by calling the allegations 'baseless and without merit,' stating it would defend itself in court. This development marks the definitive end of the merger attempt and initiates a complex legal battle between the two grocery giants over the failed transaction.
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