Albertsons sues Kroger in Delaware over collapsed $24.6 billion merger

Albertsons has initiated a two-week bench trial in Delaware Chancery Court, accusing Kroger of willfully breaching their $24.6 billion merger agreement. Judge Lori Will will decide the case, with any appeal directed to the Delaware Supreme Court. Albertsons' claim covers a $600 million termination fee, accrued interest, costs, and the premium shareholders would have received, including taxes on those gains.

The company also alleges Kroger failed to provide sufficient store divestitures for regulatory approval and created a $400 million executive bonus pool to pressure regulators. Former CEOs of Albertsons and Kroger, along with senior legal and corporate officers, are expected to testify. Kroger argues it spent more than $1 billion pursuing the deal and that the merger would not have survived FTC scrutiny under then-Chair Lina Khan.