Albertsons is seeking “billions of dollars” in damages, citing a decline in shareholder value and missed business opportunities due to the failed merger. The company also announced the official termination of the merger agreement, which entitles it to a $600 million breakup fee, according to Albertsons.
In response, Kroger rejected Albertsons’ allegations as “baseless and without merit,” claiming Albertsons had breached the agreement repeatedly and interfered in the regulatory process. A spokesperson for Kroger said the company intends to refute Albertsons’ claims in court, asserting that Kroger had “upheld the merger agreement throughout the entirety of the regulatory process.”
The legal battle follows rulings from two courts that blocked the merger. U.S. District Judge Adrienne Nelson in Oregon issued a preliminary injunction, finding the deal harmful to competition in grocery markets. Similarly, Judge Marshall L. Ferguson of King County Superior Court in Washington criticized the companies’ proposed divestiture plan, stating it could not replicate the competitive intensity currently seen in the market.
