The high-stakes case over the failed Albertsons-Kroger merger begins today
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Albertsons Companies (ACI) and Kroger (KR) will meet on Monday in Delaware Chancery Court for a trial over their failed $24.6B merger dating back to 2022. Vice Chancellor Lori Will will hear the case alone, with no jury, and the trial is scheduled to last two weeks.
At the heart of the lawsuit, Albertsons (ACI) is seeking at least $8B from Kroger (KR) and as much as $9.3 billion, which includes a $600M breakup fee it says Kroger (KR) still owes. Albertsons (ACI) maintains that Kroger (KR) failed to take sufficient steps to resolve regulators’ competition concerns, particularly around the proposed sale of hundreds of stores to C&S Wholesale Grocers. It also claims Kroger (KR) offered divestiture proposals that would have let it keep many of the most profitable stores while selling weaker-performing ones, which set the deal up to be rejected by regulators.
Kroger's (KR) defense hinges on the claim that both companies understood the significant antitrust challenges facing the deal and that no additional steps would have changed the regulatory outcome.
Notably, the former CEOs of both companies are expected to testify in the high-stakes case.
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