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- calendar_today November 2, 2026
Albertsons Seeks Billions After Failed Merger With Kroger
Boise-based Albertsons is pursuing more than $8 billion in damages and interest from Kroger following the collapse of their proposed $25 billion merger in 2024. The dispute centers on which company bears responsibility for the failed deal and resulting regulatory challenges. Proceedings recently concluded in the Delaware Court of Chancery after two weeks of testimony.
Chancery Court: A Premier Venue For Business Disputes
The trial was held in Delaware’s Court of Chancery, renowned as the key forum for major merger and acquisition (M&A) disputes in the country. Many Fortune 500 companies are registered in Delaware, making the Chancery Court the default venue for resolving high-stakes business litigation, whether between companies or involving shareholders.
Central Disagreements and Testimony
The case revolves around Albertsons’ claim that Kroger failed to perform sufficient due diligence to satisfy regulators, leading to the breakdown of the merger. Kroger has countered, alleging that Albertsons worked behind the scenes to undermine the deal—specifically referencing Susan Morris, then chief operating officer and now CEO of Albertsons.
Key witnesses included former CEOs Vivek Sankaran of Albertsons and Rodney McMullen of Kroger, who provided starkly different accounts of the merger’s demise. Current Albertsons CEO Susan Morris also testified. She explained that although she had been considered for leadership in the combined entity, no concrete offer was made, and communication with CNS—the company slated to purchase hundreds of stores in a required divestiture—occurred via her personal channels. Morris denied sharing confidential merger information with CNS.
Regulatory Hurdles and Store Divestiture Plan
A major part of the trial focused on the companies' efforts to address antitrust concerns, particularly the proposal to sell hundreds of stores to secure regulatory approval. Vice Chancellor Lori Will, presiding over the trial, questioned both sides on the technicalities of the divestitures—including the process and economic rationale for selecting which stores would be sold.
Legal Strategy and Role of Attorneys
The trial featured antitrust attorneys and deal counsel from both companies, who described the complexities of navigating the regulatory review. Their testimony shed light on internal decision-making and the guidance provided as Albertsons and Kroger attempted to overcome antitrust obstacles.
Timeline: What's Next for the Case?
The Chancery Court judge alone will render a decision in this non-jury trial. Further legal arguments by attorneys are scheduled to take place several months after witness testimony, likely in February next year. A final opinion from Vice Chancellor Will is expected three months after those arguments, potentially extending the trial’s resolution until mid-2027.
Either party dissatisfied with the eventual outcome will be able to appeal directly to the Delaware Supreme Court, a process that could add an additional six months to a year before a final decision is reached.
Conclusion
The dispute between Albertsons and Kroger over their failed merger remains unresolved, with both companies maintaining divergent positions on the breakdown. As the legal process continues, the outcome of this high-profile grocery merger trial could shape future deal-making and litigation strategies in the sector.
Source: boisestatepublicradio.org.
