Kroger is facing fresh legal fire as Albertsons intensifies its accusations in the wake of their collapsed $24.6 billion merger. In a recent court filing dated May 17, Albertsons claims that Kroger acted in a disorganised and inadequate manner during its efforts to divest stores—an essential step to secure regulatory approval.
The lawsuit, originally filed by Albertsons in Delaware Chancery Court in December 2024, alleges that Kroger failed to uphold its contractual obligation to make “best efforts” to complete the deal. The merger, once touted as the largest supermarket acquisition in U.S. history, was officially abandoned on December 11, 2024, after judges in two courts ruled against it, siding with antitrust concerns.
Albertsons’ latest filing criticises Kroger’s store divestiture strategy as haphazard and unconvincing, arguing that the grocer’s reluctance to engage serious buyers and heed regulatory feedback led to the FTC’s rejection of the deal. The Federal Trade Commission sued in February 2024 to block the merger, followed by multiple state attorneys general, all citing antitrust violations and a potential threat to competition.
Albertsons is now seeking billions in damages, including the $600 million termination fee, legal reimbursements, and shareholder compensation for the failed deal.
Kroger, in response, maintains that Albertsons is attempting to deflect from its own failings, calling the allegations “baseless.” However, this newest legal twist adds further pressure on Kroger, which must now defend itself against not just one, but multiple allegations tied to its handling of the merger process.
This legal battle is shaping up to be a landmark case in U.S. retail history—highlighting not only the high stakes of mega-mergers but also the increasing scrutiny major grocery chains face from regulators and the courts alike.