Kroger and Albertsons: the food fight every dealmaker should be watching
Source: Fortune ·
A review of what has been filed suggests that Kroger’s argument will be that it really, really, really tried to make the Albertsons deal work.
From the source
When two large companies agree to merge, they typically promise to use “reasonable best efforts” to win regulatory approval. In plain English that means, “we’ll try.” But when supermarket giant Kroger agreed to acquire Albertsons for $24.6 billion in 2022, a pledge to try was not enough. In a form of commitment that amounts to what the lawyers call “hell or high water,” Kroger agreed to take “any and all actions” necessary to win approval. That is a big burden, which was understandably interpreted by Albertsons as a clear signal that Kroger was committed to honoring its contract and was all in on the deal. Then the high water arrived. In December 2024, on the same day, a federal judge in Oregon granted the Federal Trade Commission’s request to block the merger and a state judge in Seattle did the same in a suit brought by Washington’s Attorney General. Albertsons terminated the deal and sued Kroger the next day. I can only assume the Albertsons team was dumbstruck to discover that,…