US grocery chain Kroger has counteredued its rival Albertsons, escalating a legal battle over the collapse of their proposed $25 billion merger. In December, courts blocked the deal, and Albertsons sued Kroger, alleging breach of contract that led to the merger’s demise.
Albertsons had sought billions of dollars in damages along with a $600 million termination fee. However, Kroger claims these demands are baseless. The companies had been working together for two years to combine their operations, which regulators deemed would eliminate competition and lead to higher prices.
Kroger accuses Albertsons of “misconduct” and says the supermarket chain is trying to distract from its own leadership issues. Meanwhile, Albertsons defends itself, saying it is committed to the merger’s success and that Kroger failed to meet its obligations.
The counterclaim seeks damages from Albertsons to recover investments made for regulatory approval. The case highlights tensions between the two companies after the collapse of the merger.
Source: https://www.reuters.com/business/retail-consumer/kroger-countersues-rival-albertsons-2025-03-25