Kroger countersues Albertsons in feud over failed $25B merger

Kroger on Tuesday filed a countersuit in its dispute with Albertsons over a failed $25 billion merger between the two grocery behemoths.

The merger was blocked late last year by federal and state courts, leading Albertsons to terminate its merger agreement with Cincinnati-based Kroger in December and sue Kroger for breach of contract in the Delaware Court of Chancery.

Albertsons also asked for billions of dollars in damages along with a $600 million termination fee.

In its lawsuit, Albertsons claimed Kroger mishandled its approach to securing regulatory approval for its 2022 agreement to buy Albertsons in an attempt to derail the merger.

Kroger files countersuit

The original terms of the agreement called for Kroger and Albertsons to sell off hundreds of stores to C&S Wholesale Grocers to avoid antitrust concerns and secure federal and state regulatory approval.

Kroger denied Albertsons' breach of contract claims and filed a countersuit accusing Boise, Idaho-based Albertsons of going behind its back in an attempt to gain approvals.

The countersuit alleges Albertsons worked with C&S Wholesale using personal email addresses and cell phone numbers to pressure Kroger to sell off more stores and assets than it originally had planned.