Albertsons is giving up on its merger with Kroger and it is suing the grocery chain, saying it didn°®¶¹appt do enough to secure regulatory approval for the $24.6 billion agreement.
The move came the day after in separate court cases. U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the merger Tuesday after holding a in Portland, Oregon.
An hour later, Judge Marshall Ferguson in Seattle issued a permanent injunction barring the merger in Washington after concluding it would lessen competition in the state and violate consumer-protection laws.
Kroger and Albertsons in 2022 proposed what would be the in U.S. history. a merger would help them better compete with big retailers like Walmart, Costco and Amazon.
Under the merger agreement, Kroger and Albertsons °®¶¹app who compete in 22 states °®¶¹app agreed to in places where their locations overlap to , a New Hampshire-based supplier to independent supermarkets that also owns the Grand Union and Piggly Wiggly store brands.
But the Federal Trade Commission sued to block the merger this year, saying it would raise prices and lower workers°®¶¹app wages by eliminating competition. It also said the divestiture plan was inadequate and that C&S was ill-equipped to take on so many stores.
On Wednesday, Albertsons said that Kroger failed to exercise °®¶¹appbest efforts°®¶¹app and to take °®¶¹appany and all actions°®¶¹app to secure regulatory approval of the companies°®¶¹app agreed merger transaction.
Albertsons said Kroger refused to divest the assets necessary for antitrust approval, ignored regulators°®¶¹app feedback and rejected stronger divestiture buyers.
Kroger willfully breached the Merger Agreement in several key ways, including by repeatedly refusing to divest assets necessary for antitrust approval, ignoring regulators°®¶¹app feedback, rejecting stronger divestiture buyers and failing to cooperate with Albertsons.
Kroger said that it disagrees with Albertsons °®¶¹appin the strongest possible terms.°®¶¹app
It said early Wednesday that Albertsons was responsible for °®¶¹apprepeated intentional material breaches and interference throughout the merger process.°®¶¹app
Shares of Albertsons rose more than 2% at the opening bell, while Kroger°®¶¹apps stock rose slightly.
