Albertsons seeks over $9.3 billion from Kroger after failed $24.6 billion merger

Albertsons submitted court documents in Delaware Chancery Court demanding that Kroger compensate it for more than $9.3 billion after their $24.6 billion merger fell apart. The request, slated for a two-week trial later this month, asks Judge Lori Will to rule that Kroger “willfully” breached the agreement by not employing best efforts to secure antitrust approval, including refusing to modify its asset-divestiture plan.

The claimed amount covers the premium shareholders would have earned, a $600 million termination fee and $75 million in interest and related costs. Albertsons contends Kroger stuck to a low-ball strategy despite regulatory concerns, while Kroger maintains it pursued every avenue and accuses Albertsons of sabotaging the divestiture by coordinating with C&S Wholesale Grocers, the designated buyer of the stores. The merger was halted in December 2024 after a federal judge sided with the FTC, which argued the proposed sale of hundreds of stores to C&S was insufficient to address antitrust issues.

Albertsons terminated the deal and sued, hoping a favorable ruling would benefit its shareholders, including major investor Cerberus Capital Management. The dispute adds pressure to Albertsons, which has recently cut its sales and profit forecasts, seeing its stock fall over 20%.