Kroger ex‑CEO testifies that FTC opposition doomed Albertsons merger
Former Kroger CEO Rodney McMullen told the Delaware Court of Chancery that the Federal Trade Commission’s aggressive stance under Lina Khan made the $24.6 billion Kroger‑Albertsons merger impossible from the start. He said Kroger spent more than $1 billion pursuing the deal, negotiated a $600 million termination fee and a cap of 650 stores to divest, and relied on antitrust counsel for store selection. Albertsons is suing Kroger for over $9.3 billion, alleging breach of the merger agreement.
Why it matters
The court’s ruling could obligate Kroger to pay the $9.3 billion claim, affecting its balance sheet and shareholders. The outcome may also shape how grocery companies structure future mergers in a stricter antitrust environment, according to the trial commentary.
Key facts
- 1The merger was valued at $24.6 billion. theindianalawyer.com
- 2Albertsons is seeking more than $9.3 billion in damages, including a $600 million termination fee and over $8 billion for the foregone premium. qz.com
- 3Kroger spent more than $1 billion pursuing the transaction and defending against antitrust suits. briefs.co
- 4The deal required the divestiture of up to 650 stores, with C&S Wholesale Grocers designated to acquire the locations. theindianalawyer.com
- 5Around 30 witnesses are expected to testify over a two‑week trial presided over by Vice Chancellor Lori Will. qz.com
- 6McMullen resigned in March 2025 following a board probe into his personal conduct, which he says is unrelated to the merger. briefs.co
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.