Albertsons Sues Kroger After Merger Termination

Albertsons has officially terminated its $24.6 billion merger agreement with Kroger following injunctions from both federal and state courts that blocked the deal. Albertsons alleges that Kroger failed to provide adequate divestiture proposals and did not address regulatory concerns, which they argue harmed their interests and led to the court's decisions. In response, Albertsons has filed a lawsuit against Kroger in Delaware for breach of contract, seeking a $600 million termination fee along with additional damages. The CEO of Albertsons expressed disappointment over the court rulings and Kroger's alleged self-serving actions during the merger process. Meanwhile, Cerberus Capital Management, Albertsons' largest shareholder, remains optimistic about the company's standalone value and has no plans to sell its shares. Albertsons also announced plans for a 25% increase in its quarterly cash dividend and a share repurchase program of up to $2 billion.