American supermarket chain Kroger has reached a settlement with C&S Wholesale Grocers, concluding a litigation in the Superior Court for the State of Delaware.
In March 2025, C&S filed a lawsuit claiming that Kroger’s failure to finalise its proposed $24.6bn merger with Albertsons Companies resulted in a breach of their agreement.
Go deeper with GlobalData
This breach, according to C&S, entitles them to a termination fee since the incomplete deal thwarted their opportunity to purchase close to 600 stores and additional assets that Kroger and Albertsons had consented to divest as part of gaining regulatory clearance for their merger.
Kroger chairman and CEO Ron Sargent stated: “We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward.
“Kroger remains focused on serving our customers and running great stores across the US.”
In September 2023, Kroger and Albertsons Companies reached a definitive agreement with C&S Wholesale Grocers for the sale of select stores, distribution centres and other assets as part of their proposed merger, originally announced in October 2022.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn December 2023, a coalition of legislators urged the US Federal Trade Commission (FTC) to prevent Kroger’s proposed acquisition of Albertsons.
The merger has encountered resistance from consumer advocacy groups and US state secretaries, who are concerned about potential negative impacts on market competition within the grocery sector.
By April 2024, the companies amended their agreement with C&S Wholesale Grocers to modify the initial divestiture package.
The revised package was designed to address concerns from federal and state antitrust regulators regarding the original agreement and included an expanded set of stores and additional non-store assets.
However, the merger between the two companies was abandoned in December 2024 due to legal challenges.
The terms of the settlement between Kroger and C&S Wholesale Grocers have not been disclosed.
In March 2025, Kroger filed an official response and counterclaims regarding the lawsuit brought forth by Albertsons in the Delaware Court of Chancery over the abandoned deal.
