Albertsons sues Kroger after calling off $25bn supermarket merger

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US grocery chains cancel proposed deal after judge warns of harm to consumers and workers

Albertsons has ended its proposed combination with Kroger and filed a lawsuit against its would-be acquirer, after two separate judges blocked the companies’ plan for the largest supermarket merger in US history. Albertsons on Wednesday announced the decision to call a halt to the $25bn deal, which had been dogged by competition concerns.

Ferguson, who is already an FTC commissioner, is expected to usher in a more relaxed agenda towards transformative mergers and acquisitions. Kroger and Albertsons, two of the largest grocery chains in the US, argued the tie-up would help them withstand competition from grocery rivals and retailers Walmart, Amazon and Costco. The deal would have formed a supermarket behemoth, with a combined 5,000 stores across 48 US states. It has been bogged down in litigation since it was agreed in 2022.

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