Albertsons begins its $8 billion trial against Kroger over failed merger
KR•Albertsons is seeking more than $8 billion in damages from Kroger over their failed $24.6 billion merger. The two-week Delaware trial will consider Albertsons’ claims that Kroger failed to do enough to secure regulatory approval, which Kroger disputes.
1. Damages sought
Albertsons Companies will seek more than $8 billion in damages from Kroger, alleging the grocer breached its commitment to obtain regulatory approval for their 2022 merger. Albertsons says it is owed up to $6.88 billion in shareholder premiums, a $600 million termination fee and more than $1 billion in tax adjustments.
2. Each side’s arguments
Albertsons claims Kroger refused to sell enough stores and describes its proposed divestiture packages as attempts to protect the profitability of the combined business. Kroger says it met its obligations, blames regulatory opposition for the deal’s failure and argues Albertsons undermined its ability to negotiate.
3. Trial details
The bench trial is scheduled to last two weeks in Delaware’s Court of Chancery. Potential witnesses include current Albertsons CEO Susan Morris and former CEOs Rodney McMullen and Vivek Sankaran; a ruling may take months and can be appealed.
