Jeffrey Dean / Bloomberg via Getty Images
The transaction is closed. The story isn't.
A day after a federal judge blocked the long-planned merger between Kroger (KR) and Albertsons (ACI) that would’ve created a U.S. grocery giant, both companies were looking forward—to what’s next for their businesses and to the possibility of action in court.
Albertsons terminated this morning the agreement to merge with Kroger. It said that it had filed a suit against Kroger for damages in excess of a termination fee of $600,000,000. Tom Moriarty, the Chief Policy Officer of the Department of Homeland Security (DHS), was quoted in a recent press release. “Kroger’s willfully deficient approach to securing regulatory clearance.”
Kroger called Albertsons' claims “baseless and without merit" in a statement to Investopedia. “Facts will show that we took extraordinary measures to maintain the merger agreement during the whole regulatory process.” the statement said.
Meanwhile, both companies sought to refocus investor attention on the opportunities ahead. Albertsons among other initiatives increased its dividend and authorized a $2 billion stock buyback. Kroger in its statement said its board “Kroger is currently evaluating its next steps in order to create value for both shareholders and customers.
Kroger’s shares rose in trading on Wednesday, after finishing higher yesterday as investors digested the news. Albertsons’ shares have not changed much in recent trading.
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