Albertsons Companies Inc. filed a lawsuit against Kroger Co. in Delaware’s Court of Chancery on Wednesday, accusing the grocery giant of deliberately sabotaging their proposed $24.6 billion merger. The lawsuit follows two court rulings that blocked the deal just a day prior.
In its complaint, which is currently under seal, Albertsons claims that Kroger “willfully breached” the merger agreement by failing to divest assets as required for regulatory approval and ignoring feedback from antitrust authorities. The grocery chain also accuses Kroger of acting in bad faith and prioritizing its financial interests over the merger’s success.
Albertsons General Counsel Tom Moriarty said in a statement that Kroger’s alleged actions deprived shareholders of the premium they were promised and harmed employees and consumers. “Rather than fulfill its contractual obligations, Kroger acted in its own financial self-interest,” Moriarty stated, criticizing Kroger’s insufficient proposals to address antitrust concerns.
