Kroger has pushed back against Albertsons’ allegations that the supermarket giant didn’t do enough to secure regulatory approval for their planned merger. In court papers, Kroger claims that Albertsons disregarded the companies’ merger agreement and worked secretly with a partner, C&S Wholesalers, to force Kroger into divesting more stores.
Kroger also alleges that Albertsons was planning to sue the company if the deal didn’t go through, but instead of working together, Kroger claims that Albertsons refused to listen to its concerns about regulators’ satisfaction with the proposed plan. The companies first announced their merger plans in 2022, citing the need for increased competition with big retailers like Walmart and Costco.
However, the Federal Trade Commission and two states blocked the deal last year, citing concerns over reduced competition, higher prices, and lower wages. Kroger claims that even after the lower courts ruled against them, it believed there was still a chance for the merger to succeed. The company allegedly told Albertsons that it planned to re-engage with the FTC after President Trump’s election, expecting a more favorable outcome.
Instead, Albertsons filed a lawsuit against Kroger just days later, accusing the company of failing to address regulators’ concerns and refusing to explore alternative buyers beyond C&S Wholesalers. The dispute highlights tensions between the two companies as they navigate the aftermath of their failed merger plans.
Source: https://finance.yahoo.com/news/kroger-blames-albertsons-mergers-demise-173515197.html