Core Viewpoint - Albertsons has filed a lawsuit against Kroger after a US judge blocked their proposed 600 million termination fee along with additional damages to compensate Albertsons and its shareholders [1][4]. - Kroger has responded by calling Albertsons' claims "baseless" and an attempt to deflect blame for the merger's failure [3][6]. Group 2: Merger Background - The merger, agreed upon in October 2022, aimed to create the largest grocery chain in the US with nearly 5,000 stores across 48 states and Washington, D.C. [7]. - The Federal Trade Commission (FTC) intervened in February, arguing that the merger would harm competition, particularly citing Kroger's plan to divest 579 stores for $2.9 billion as insufficient [7][9]. - FTC Chair Lina Khan expressed concerns that the merger could lead to higher prices for consumers due to reduced competition [8][9]. Group 3: Market Reactions - Following the news of the lawsuit and merger blockage, Albertsons' shares fell by 0.1%, while Kroger's shares increased by 1.4% [4].
Albertsons sues Kroger, terminates deal after federal judge blocks massive grocery merger