Albertsons accuses Kroger of repeatedly ignoring regulators merger concerns
Boise, Idaho – After an unsuccessful merger attempt with Kroger that would have created the country’s largest grocery store. Albertsons is making news once again and this time they are going after Kroger for breaching a contract that costed them billions.
In a press release that was posted on Albertsons website, the company states, “Kroger willfully breached the Merger Agreement in several key ways, including by repeatedly refusing to divest assets necessary for antitrust approval, ignoring regulators’ feedback, rejecting stronger divestiture buyers and failing to cooperate with Albertsons.”
Albertsons’ General Counsel and Chief Policy Officer, Tom Moriarty, is qouted as saying, “A successful merger between Albertsons and Kroger would have delivered meaningful benefits for America’s consumers, Kroger’s and Albertsons’ associates, and communities across the country.” Moriarty continues sharing his disappointment by saying, “Rather than fulfill its contractual obligations to ensure that the merger succeeded, Kroger acted in its own financial self-interest, repeatedly providing insufficient divestiture proposals that ignored regulators’ concerns. Kroger’s self-serving conduct, taken at the expense of Albertsons and the agreed transaction, has harmed Albertsons’ shareholders, associates and consumers.”
Kroger has responded to Abertsons’ lawsuit by calling it “claims are baseless and without merit.” Kroger goes on to say in the statement, “Kroger refutes these allegations in the strongest possible terms, especially in light of Albertsons’ repeated intentional material breaches and interference throughout the merger process, which we will prove in court.”