Kroger-Albertsons Merger Cancelled Following Adverse Court Rulings
On December 10th U.S District Judge Adrienne Nelson issued a temporary injunction at the request of the Federal Trade Commission, blocking the proposed merger of The Kroger Company with competitor Albertsons Companies. King County Washington Superior Court Judge Marshall Fergusson ruled the proposed merger as "unlawful"
Informed observers previously indicated that in the event of adverse verdicts the transaction would not proceed. Accordingly Albertsons Companies has filed a lawsuit against intended partner Kroger claiming that there was insufficient action to advance the transaction in the face of opposition by state Attorneys General, unions and the SEC.. Apart from the substantial legal fees expended Kroger is now liable for a $600 million breakup penalty plus damages. The question arises as to the continued tenure of Rodney McMullin as CEO of the Kroger Company given his overreach. It appears that egg producers have dodged a bullet since the merger would have created a poweful buying force to the detriment of the Industry.
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