The Kroger-Albertsons Deal Is Off. Courthouse Drama Could Be Next | Global News Avenue

The deal is over. That’s not the story.

One day after federal judge appears Blocked long-planned merger Kroger (betweenSouth Korea) and Albertson (ACI) would create a U.S. grocery giant, and both companies are looking forward to the next steps for their businesses and the possibility of action in court.

Albertsons agreed to partner with Kroger in 2022 but terminated the merger agreement this morning, saying it filed a lawsuit against Kroger seeking damages on top of a $600 million termination fee. In a press release, Chief Policy Officer Tom Moriarty noted that “Kroger has taken an intentionally flawed approach to securing regulatory clearances.”

In a statement, Kroger called Albertson’s claims “baseless and baseless.” Investment Encyclopedia. “We have made every effort to safeguard the merger agreement throughout the regulatory process, and the facts will amply prove this,” the statement said.

At the same time, both companies are trying to refocus investors’ attention on future opportunities. Initiatives such as Albertsons have increased its dividend and authorized the issuance of $2 billion worth of stock repurchase. Kroger said in a statement that its board of directors “is currently evaluating next steps to serve the best interests of Kroger customers and employees and create value for shareholders.”

Kroger shares closed higher yesterday and gained further in Wednesday trading as investors digested the news. Albertsons’ stock price has been little changed recently.