Consumer

Albertsons Sues Kroger for Breach of Contract in Failed Deal

  • Company seeks billions of dollars in damages and breakup fee
  • Federal judge blocked the proposed $24.6 billion pact
An Albertsons grocery store in Las Vegas.Photographer: Ethan Miller/Getty Images
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Albertsons Cos. said it filed a lawsuitBloomberg Terminal against Kroger Co. after terminating the companies’ proposed $24.6 billion deal, claiming it failed to exercise “best efforts” to secure regulatory approval.

Albertsons said in a statementBloomberg Terminal that it’s seeking billions of dollars in damages from Kroger to make Albertsons and its shareholders whole. In addition to a $600 million termination fee, the grocery chain wants compensation for the “multiple years and hundreds of millions of dollars it devoted to obtaining approval for the merger.”