Kroger and Albertsons: the food fight every dealmaker should be watching
A review of what has been filed suggests that Kroger’s argument will be that it really, really, really tried to make the Albertsons deal work.
When grocery giants Kroger and Albertsons agreed to a $24.6 billion merger in 2022, both companies pledged to take "any and all actions" necessary to secure regulatory approval. This commitment, described as "hell or high water" by lawyers, signaled Kroger's dedication to the deal. However, the deal faced a significant setback when a federal judge blocked the merger in December 2024, citing concerns over competition and consumer protection.
Albertsons, with the support of Washington's Attorney General, also filed a lawsuit against Kroger. The Delaware Court of Chancery is now hearing arguments from both sides to determine if Kroger fulfilled its contractual obligations. Kroger's legal strategy hinges on demonstrating that it made a genuine effort to win approval, despite the high costs involved.
However, Albertsons argues that Kroger's focus on preserving its most valuable assets and stores undermined the viability of a potential new competitor. The outcome of this case could set a precedent for interpreting the term "any and all actions" in contract law.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
