US grocery giant Albertsons has initiated a two-week bench trial in Delaware’s Court of Chancery, suing rival Kroger for more than $8 billion in damages following the collapse of their proposed $24.6 billion merger.
📌 Key Figures & Legal Claims:
• $8+ Billion Total Damages Claimed: Includes a $6.88 billion lost shareholder premium, a $600 million termination fee, and over $1 billion in tax adjustments.
• $24.6 Billion Aborted Deal: Originally struck in 2022 to combine 5,000 stores and compete against Walmart, Costco, Amazon, and Aldi before being blocked by US antitrust regulators in December 2024.
• 650 Store Divestiture Dispute: Albertsons alleges Kroger breached its agreement to take “any and all actions” to secure regulatory clearance by refusing to divest a sufficient number of stores (up to 650) to protect its own post-merger profitability.
• Diverging Stock Performance: Since the deal’s termination, Kroger’s stock has gained ~4%, while Albertsons has dropped nearly 30%.
💡 Kroger’s Defense: Kroger maintains it fulfilled all contractual obligations—spending over $1 billion and tens of thousands of hours attempting to close the deal—and argues regulatory opposition, rather than breach of contract, doomed the merger.