Kroger Statement Responding to Albertsons' Baseless Lawsuit

Rhea-AI Summary

Kroger (NYSE: KR) has issued a statement responding to Albertsons' lawsuit, strongly refuting all allegations as baseless and without merit. The company asserts that Albertsons committed multiple material breaches and interference during the merger process. Kroger views the lawsuit as an attempt by Albertsons to deflect responsibility and wrongfully seek the merger's break fee.

Kroger maintains it made extraordinary efforts to uphold the merger agreement throughout the regulatory process and plans to defend its position in court. The company's Board of Directors is currently evaluating next steps to create value for shareholders while serving customers' and associates' interests.

Positive

• Company maintains strong financial position to drive sustainable growth
• Board actively evaluating strategic alternatives for shareholder value creation

Negative

• Merger agreement with Albertsons effectively terminated
• Legal expenses expected from upcoming court proceedings
• Potential reputational impact from public legal dispute

CINCINNATI, Dec. 11, 2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today issued the following statement:

Albertsons' claims are baseless and without merit.

Kroger refutes these allegations in the strongest possible terms, especially in light of Albertsons' repeated intentional material breaches and interference throughout the merger process, which we will prove in court.

This is clearly an attempt to deflect responsibility following Kroger's written notification of Albertsons' multiple breaches of the agreement, and to seek payment of the merger's break fee, to which they are not entitled.

Kroger looks forward to responding to these baseless claims in court. We went to extraordinary lengths to uphold the merger agreement throughout the entirety of the regulatory process and the facts will make that abundantly clear.

We are incredibly proud of the Kroger team for how they worked through the merger process with the highest degree of integrity and commitment.  

We are confident in Kroger's value creation model to drive sustainable growth.  Kroger's Board of Directors is currently evaluating next steps that serve the best interests of Kroger's customers and associates, and create value for shareholders.

About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies nearly half a million associates who serve over 11 million customers daily through a seamless digital shopping experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

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SOURCE The Kroger Co.

FAQ

Why did Albertsons file a lawsuit against Kroger (KR)?

Albertsons filed a lawsuit seeking the merger's break fee, claiming breach of merger agreement terms. Kroger maintains these claims are baseless and states that Albertsons is the party that breached the agreement.

What is Kroger's (KR) response to Albertsons' lawsuit?

Kroger strongly refutes Albertsons' allegations, stating they are baseless and without merit. The company asserts that Albertsons committed multiple material breaches during the merger process.

What actions is Kroger's (KR) Board taking after the merger dispute?

Kroger's Board of Directors is evaluating next steps that serve the best interests of customers and associates while creating shareholder value.

Will Kroger (KR) have to pay the merger break fee to Albertsons?

Kroger states that Albertsons is not entitled to the merger break fee and plans to defend this position in court.