By The Epoch Times | Created at 2026-10-15 04:57:21 | Updated at 2026-10-16 09:39:03
1 day ago
Albertsons is seeking to collect about $8 billion from Kroger after the collapse of what was poised to become the largest grocery chain merger in U.S. history.
The two sides agreed to a $24.6 billion merger in 2022. Albertsons argues that Kroger said it would try to resolve anticompetitive worries with regulators.
The deal, meant to fend off increasing grocery competition from Amazon and Walmart, fell through in December 2024 after a federal judge sided with the Federal Trade Commission on antitrust grounds.
The two largest grocery chains in the United States plan to present their case to a Delaware Court of Chancery judge at trial next week.
According to an Oct. 12 pretrial briefing, America’s second-largest traditional supermarket chain argued that Kroger “caused Albertsons over $8 billion in harm and left it to pick up the pieces.”
The demanded amount includes a $600 million breakup fee, compensation for shareholder losses incurred after the proposed merger tanked, and $85 million in interest and additional costs.
“Kroger willfully breached these maximalist contractual commitments. Kroger wanted the merger but only on its own terms,” the court document stated.
Albertsons also accused Kroger of prioritizing profit targets, even if it threatened the merger.
“Kroger inflexibly held to its pre-merger targets—even refusing to divest assets specifically identified by the regulators as key to the success of its chosen divestiture buyer,” the filing said.
Kroger argued that Albertsons could not prove these claims in court as it did not take measures to ruin the merger and instead did everything it could to secure the merger.
“Even if it did, Albertsons cannot prove that any conduct by Kroger caused its alleged damages. And even if it could, the damages Albertsons seeks do not reflect the reasonable expectations of the parties,” the company said in its filing.
Shares of Kroger and Albertsons rose nearly 4 percent and 3 percent, respectively, in the middle of the trading week.
Kroger Job Losses
Kroger plans to cut about 3,000 corporate positions over the next three years, a spokesperson confirmed to The Epoch Times on Oct. 13.
The planned terminations would impact about 37 percent of the grocery giant’s 8,200 corporate employees.
“Technology is reshaping what’s possible,” CEO Greg Foran wrote in a memo to employees. “The way work gets done is changing across every industry; we must adapt and take advantage of technology. We need to adopt capabilities, reduce duplicative work and look closely at where work is best fit to be done.”
Shoppers walk outside an Albertsons grocery store, in a file photograph. Ethan Miller/Getty Images
The corporate restructuring comes as Kroger plans to expand investments in artificial intelligence (AI) and lower operating costs.
Last month, the Cincinnati-based company outlined a new digital strategy that uses AI to bolster the customer experience, whether helping shoppers plan meals for the week or relying on AI agents to handle the grocery shopping experience.
“This isn’t new for Kroger,” Yael Cosset, Kroger’s executive vice president, said in a Sept. 22 news release.
“We’ve long been using data science and artificial intelligence to serve our customers by precisely forecasting demand, connecting customers with the most relevant savings opportunities and helping them find and get the products they need.”
These AI investments will help make decisions and take action faster, Cosset added.
The grocer, which has about 2,700 stores, will roll out AI training and tools to its more than 400,000 employees in the coming weeks.
Kroger named Foran, who was considered tech-focused at Walmart, as its CEO in February.
Reuters contributed to this report.
