Albertsons sues Kroger for over $9 billion after blocked $24.6 billion merger

Albertsons Companies filed a lawsuit in Delaware Chancery Court demanding more than $9.3 billion from Kroger for breaching their $24.6 billion merger agreement. Albertsons alleges Kroger failed to use “best efforts” to obtain FTC approval and refused to adjust its divestiture plan, triggering a termination fee and other damages. The case is set for a two‑week trial later in October. Kroger denies liability, saying it spent over $1 billion pursuing the deal in good faith.

If Albertsons prevails, the court could order Kroger to pay a $600 million breakup fee, $75 million in interest, and the lost merger premium, which would provide a direct cash benefit to Albertsons shareholders. The outcome also signals how aggressively parties may be held liable for failed large‑scale mergers under antitrust pressure.

  • 1Albertsons seeks more than $9.3 billion in damages, including a $600 million termination fee and $75 million in interest.
  • 2The lawsuit concerns the collapse of a $24.6 billion merger that was blocked by a federal court in December 2024.
  • 3Albertsons alleges Kroger breached the agreement by not using “best efforts” to secure regulatory approval and by refusing to adjust its asset‑divestiture strategy.
  • 4Kroger claims it spent more than $1 billion and “countless hours” trying to obtain approval and denies owing any damages.
  • 5The trial is scheduled for a two‑week period in Delaware Chancery Court later in October 2026.
  • 6Albertsons’ largest shareholder, Cerberus Capital Management, holds more than 30 % of the company’s shares as of the end of June.

Sources