Kroger's former CEO Rodney Mc Mullen testified in Delaware Chancery Court that the company fulfilled all requirements to secure regulatory approval for the $24.6 billion Albertsons merger, now blocked for antitrust reasons. Mc Mullen stated the deal "was just doomed from the beginning" due to resistance from the FTC under Lina Khan. Albertsons, demanding over $9.3 billion in damages, accuses Kroger of breaching the agreement by failing to propose an adequate asset divestiture package, focusing instead on internal profit targets.
The merger would have created the second-largest US grocery chain to compete with Amazon and Walmart. To obtain approval, Kroger and Albertsons agreed to sell hundreds of stores to C&S Wholesale Grocers, with the agreement limiting sales to no more than 650 stores. Albertsons seeks a $600 million termination fee, interest, costs, and over $8 billion in lost premiums and taxes.
Mc Mullen testified he had a "limited role" in store selection, only weighing in on five stores, and relied on antitrust counsel. The trial continues with around 30 witnesses over two weeks. Kroger spent over $1 billion pursuing the merger.
Mc Mullen resigned in March 2025 following a board investigation into personal conduct, which he says is unrelated to the merger or job performance.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing