On October 14, 2022, on the New York Stock Exchange, traders displayed trading information for Kroger Co. and Albertsons Companies Inc. on the screen.
Brendan McDermid | Reuters
Albertsons $25 billion merger proposal formally terminated on Wednesday hook up It filed a lawsuit against its supermarket rival, claiming Kroger breached its contract and failed to fulfill its promise to help get the deal approved.
A day earlier, a judge blocked the planned collaboration.
Albertsons said in a press release that Kroger “repeatedly refused to divest assets required for antitrust approval, ignored feedback from regulators, rejected stronger divestiture buyers and failed to work with Albertsons.” Breach of the Merger Agreement.
Tom Moriarty, general counsel and chief policy officer of Albertsons, said in a statement: “Kroger’s selfish actions harmed Albertsons’ shareholders, employees, and employees at the expense of Albertsons and the negotiated transaction. and consumers. “We are disappointed that the opportunity to realize the significant benefits of the merger was lost due to Kroger’s deliberately inadequate approach to obtaining regulatory clearance. “
In a statement, Kroger called the allegations in the lawsuit “baseless and baseless.”
“This is an apparent attempt to shift liability after Kroger notified Albertsons in writing of multiple breaches of the agreement and sought payment of a merger termination fee to which they were not entitled,” the company statement said.
Nearly two years ago, Kroger announced plans to acquire Albertsons and join forces to fend off Walmart, Amazon and costco. The deal would bring nearly 40 supermarket chains into one company, including Kroger’s Fred Meyer and Albertsons’ Safeway.
Wednesday’s lawsuit amounted to a corporate divorce battle.
The companies are at odds over who should pay legal fees related to the merger and who, if any, is responsible for paying the breakup fee.
Albertsons said in a news release that the company is owed $600 million in termination fees and “relief benefits, reflecting the hundreds of millions of dollars it has invested over the years to get merger approval, as well as the challenges Albertsons has experienced as a company.” A long-term unnecessary hardship.” The consequences of Kroger’s actions. “
Kroger, on the other hand, disputed the payment to Albertsons in a statement and said it “looks forward to responding to these baseless allegations in court.”
Shares of Albertsons and Kroger were up about 0.5% and 1%, respectively, in early trading Wednesday.
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