
Kroger blames Albertsons for merger’s demise in new court filings
Kroger said in Tuesday’s court filing that it should not be forced to pay Albertsons a $600 million termination fee as well as billions of dollars in legal fees.
Kroger said in Tuesday’s court filing that it should not be forced to pay Albertsons a $600 million termination fee as well as billions of dollars in legal fees.
Rodney McMullen, 64, began his career with Kroger in 1978 as a part-time stock clerk and bagger. He was named Kroger’s CEO in 2014 and became the company’s chairman the following year.
With an emphasis on farms tightening their measures to prevent bird flu’s spread, Agriculture Secretary Brooke Rollins said the USDA will invest another $1 billion on top of the roughly $2 billion it has already spent since the outbreak began in 2022.
The spike in egg prices was the biggest since the nation’s last bird flu outbreak in 2015 and accounted for roughly two-thirds of the total increase in food costs last month, according to the U.S. Bureau of Labor Statistics.
Albertsons is accusing Kroger of not doing enough to secure regulatory approval for the $24.6 billion agreement, which would have been the largest grocery store merger in U.S. history.
Kroger and Albertsons in 2022 proposed what would be the largest grocery store merger in U.S. history. But the Federal Trade Commission sued earlier this year, seeking to block the $24.6 billion deal.
Kroger is waiting for a federal judge to rule on its proposed acquisition of Albertsons for about $24.6 billion, a deal it announced more than two years ago.
Aldi operates 84 stores in Indiana, including one other store in Boone County and four in neighboring Hamilton County.
The Federal Trade Commission argues the deal would eliminate competition and lead to higher food prices for already struggling customers.
The Federal Trade Commission contends the $24.6 billion deal would eliminate competition and lead to higher food prices for already struggling customers.
The plant has been linked to the deaths of at least nine people and hospitalizations of about 50 others in 18 states, including Indiana.
The two companies proposed what would be the largest supermarket merger in U.S. history in October 2022. But the Federal Trade Commission sued to prevent the $24.6 billion deal, alleging it would eliminate competition and raise grocery prices.
Legal experts characterize the move as an extraordinary attempt to interrupt the FTC’s enforcement powers, as it relies on a recent Supreme Court decision that limited a separate federal agency’s use of in-house legal proceedings.
Multiple retailers, restaurants and other businesses recently opened, closed or began planning new locations in the north suburbs of Indianapolis.
The recalls are tied to an ongoing outbreak of listeria poisoning that has killed two people and sickened nearly three dozen in 13 states, according to the U.S. Centers for Disease Control and Prevention.
In central Indiana, Boar’s Head products are sold at Kroger, Needler’s Fresh Market and Fresh Thyme.
It’s unclear if the new plan will satisfy regulators. In February, the U.S. Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants.
The report, which collected information confidentially from retail giants Amazon.com Inc. and Walmart Inc. as well as chains like Kroger Co., concluded the largest grocery stores gained a competitive advantage over small competitors.
Prices in the grocery category have surged 25 percent over the past four years, outpacing the overall inflation rate of 20 percent during the same period. That opens the door for retailers like Aldi and Dollar General.
Kroger said the specialty pharmacy business is separate from its in-store retail pharmacies and The Little Clinics, which are not included in the proposed sale.