A proposed merger between Kroger and Albertsons grocery chains has collapsed due to federal and state court rulings blocking the deal. The Federal Trade Commission (FTC) and nine US state attorneys general, including Arizona’s Kris Mayes, filed lawsuits to prevent the $24.6 billion merger.
The FTC secured a preliminary injunction in Oregon, while Washington state Attorney General Marshall Ferguson ruled that the merger violated the state’s antitrust law. In a separate case, Colorado Attorney General Phil Weiser also blocked the merger.
As a result, Albertsons has decided to terminate the merger agreement, citing disappointment with the courts’ decisions. However, Albertsons is taking action against Kroger, filing a lawsuit in Delaware seeking $600 million in termination fees and billions of dollars in damages.
Kroger claims that its actions are “baseless” and “without merit,” while also announcing a new $7.5 billion stock buyback plan to replace the paused buybacks that were halted due to the proposed merger.
Source: https://www.redrocknews.com/2024/12/21/grocery-merger-collapses-then-albertsons-sues-kroger