News
What’s next for Albertsons after calling off its $25B grocery merger with Kroger: More lawsuits
Last Updated on December 31, 2024 by Daily News Staff
Christine P. Bartholomew, University at Buffalo
Albertsons announced on Dec. 11, 2024, that it had called off an attempted merger with Kroger and would sue Kroger for breach of contract. The US$25 billion deal, first announced in 2022, would have combined Cincinnati-based Kroger, already the largest traditional U.S. supermarket chain, with Boise, Idaho-based Albertsons, which is currently the third-biggest grocer.
The Conversation U.S. asked Christine P. Bartholomew, a professor at the University at Buffalo School of Law who researches consumer protection, to explain how the merger failed and why it matters.
Which supermarkets belong to the two companies?
Kroger has 28 subsidiaries with nearly 2,800 supermarkets, including Harris Teeter, Dillon’s, Smith’s, King Soopers, Fry’s, City Market, Owen’s, JayC, Pay Less, Baker’s Gerbes, Pick‘n Save, Metro Market, Mariano’s Fresh Market, QFC, Ralphs and Fred Meyer.
Albertsons owns and operates more than 2,200 supermarkets through its many brands. They include Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Market and Balducci’s.
Kroger and Albertsons also operate supermarkets branded with their own names.
Had the merger gone forward, it would have been the largest of its kind in U.S. history, affecting millions of grocery shoppers.
To ward off regulators’ concerns, prior to canceling the transaction, the chains announced in 2023 a plan to sell hundreds of their supermarkets across the United States to C&S Wholesale Grocers. They updated this plan in 2024, pledging to not close any stores.
Why did Kroger want to acquire Albertsons?
The companies argued that they needed to join forces to compete against even bigger online and big box retailers. In recent years, Walmart and Costco have gained market share, while other chains have held steady or lost ground.
The companies also feared stiff competition from dollar stores, one of the fastest-growing segments of U.S. retail.
The federal government opposed the merger, with the U.S. Federal Trade Commission suing to block it. Had the deal gone through, the new company would have cemented its position, ensuring it has the largest market share for grocery purchases after Walmart.
What happened in court?
In February 2024, the FTC, along with state attorneys general representing consumers in eight states – Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming – filed a federal lawsuit in Oregon to block the merger. So did the District of Columbia’s attorney general.
This wasn’t the only legal challenge the merger faced. The Washington and Colorado attorneys general both filed suit in their own states to block the merger.
After hearings in both cases and months of uncertainty, the judges in both Oregon and Washington issued their rulings.
U.S. District Court Judge Adrienne Nelson, in Portland, Oregon, on Dec. 10, which blocked the merger pending the outcome of the administrative proceedings before the FTC.
A few hours later, Judge Marshall Ferguson in Seattle issued a permanent injunction barring the merger in Washington state only. Both judges determined that the merger risked significantly reducing competition and that the companies didn’t offer enough evidence that the merger would help consumers.
“We’re standing up to mega-monopolies to keep prices down,” Ferguson said. He called the injunction “an important victory for affordability, worker protections and the rule of law.”
Albertsons and Kroger’s plan to offload stores to C&S didn’t impress the judges. Not only did Nelson find the divestiture insufficient in scale, but she ruled it was “structured in a way that will significantly disadvantage C&S as a competitor.”
Albertsons v. Kroger
The morning after the Washington and Oregon decisions were issued, the deal was dead.
Albertsons announced it terminated the merger agreement, citing the court decisions.
Both companies still face significant legal challenges, though. Five minutes after announcing its intent to back out of the deal, Albertsons issued a second press release announcing it had filed a lawsuit against Kroger.
Albertsons said Kroger willfully breached the deal “by repeatedly refusing to divest assets necessary for antitrust approval, ignoring regulators’ feedback, rejecting stronger divestiture buyers and failing to cooperate with Albertsons.” The suit seeks significant damages, including “billions of dollars” for lost shareholder value and legal costs, as well as a $600 million merger breakup fee.
In response, Kroger said that “Albertsons’ claims are baseless and without merit.”
Albertsons’ suit against Kroger is pending in Delaware Court of Chancery, which hears many legal business disputes. The complaint remains temporarily under seal.
This article includes passages that appeared in an article about the proposed merger that was published on Feb. 28, 2024.
Christine P. Bartholomew, Professor of Law, University at Buffalo
This article is republished from The Conversation under a Creative Commons license. Read the original article.
News Brief
Earthquake Swarm Shakes Southern California Near Salton Sea
Earthquake Swarm: A swarm of earthquakes near California’s Salton Sea and Brawley area has prompted increased monitoring by seismologists as hundreds of tremors shake the region.
A swarm of earthquakes has been rattling Southern California near the Salton Sea, drawing attention from residents and seismologists across the region.
Salton Sea earthquake swarm?
The activity is centered near Brawley in Imperial County, an area known for frequent seismic movement due to its location within the Brawley Seismic Zone. According to the U.S. Geological Survey, hundreds of small earthquakes have been recorded over the past several days, with the strongest reaching a magnitude of approximately 4.7.
Residents throughout Imperial Valley, parts of Riverside County, and even portions of Arizona reported feeling shaking from several of the larger quakes. Minor incidents such as falling objects and brief power disruptions were also reported, though no major injuries or widespread structural damage have been confirmed at this time.
The region sits near the southern end of the San Andreas Fault and is considered one of California’s most geologically active areas. Scientists say earthquake swarms are relatively common near the Salton Sea because of the interaction between tectonic fault systems and geothermal activity beneath the surface.
While experts continue to monitor the situation closely, they emphasize that earthquake swarms do not necessarily indicate that a larger earthquake is imminent. However, officials encourage residents to review emergency preparedness plans, secure heavy furniture, and keep emergency supplies ready.
The Salton Sea region has experienced similar seismic swarms in the past, making it an important area of study for earthquake researchers and emergency management agencies.
For continued updates on this developing story and other regional news, visit STM Daily News.
Related External Links
- U.S. Geological Survey (USGS) – Earthquake Monitoring
- California Institute of Technology (Caltech)
- California Earthquake Preparedness Guide
- Ready.gov – Earthquake Safety Tips
- USGS – Salton Trough and Seismic Activity
Stay informed with the latest breaking news, trending stories, and real-time updates from around the world on STM Daily News. Visit our Stories This Moment page for continuously updated coverage on major events, technology, transportation, science, entertainment, and more.
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Consumer Corner
Frustration at the Pump: Why Americans are Exploring Electric Vehicles
Exploring Electric Vehicles: For more than one-third of Americans, one simple number is leading them to research electric vehicles: the final tally at a recent gas station fill-up. The pump is no longer just the close of a sale; for a growing number of drivers, it’s where questions begin.
Frustration at the Pump: Why Americans are Exploring Electric Vehicles
(Feature Impact) For more than one-third of Americans, one simple number is leading them to research electric vehicles: the final tally at a recent gas station fill-up.
This, according to new research from Hyundai Motor America, isn’t a hypothetical situation. In fact, 23% of respondents reported it’s happened to them more than once. For nearly half of Americans, pulling up to the pump now brings frustration or outright dread.
Many drivers have a number in mind where the math begins shifting, and once the shift happens, it rarely goes away. The pump is no longer just the close of a sale; for a growing number of drivers, it’s where questions begin.
For 23% of those surveyed, $5 per gallon is where they would start considering alternatives to a gas-powered vehicle. While some say they wouldn’t consider alternatives based on gas costs at all, this meaningful share of Americans points toward a specific tipping point.
Some begin by comparing models or brands while others find themselves on an automaker’s website, further along in the process than they initially expected to be. Most don’t act on this impulse right away, but drivers are increasingly caught somewhere between curious and committed – and 46% of those surveyed said they’d be likely to seriously research an EV.
The desire to leave the pump behind, which an EV would allow for, is a deal nearly half of respondents said they would take. However, the transition isn’t frictionless as charging access and range anxiety remain the top concerns for 28% of potential buyers.
While the move toward electric vehicles is often framed as a long-term decision made with spreadsheets and financial planning, for many Americans, it’s beginning somewhere smaller: a routine fuel stop and an eye-opening receipt.
If you’ve found yourself dismayed at the pump, find more information on electric vehicles at HyundaiUSA.com.
Photo courtesy of Shutterstock
eSOURCE:
Hyundai
Welcome to the Consumer Corner section of STM Daily News, your ultimate destination for savvy shopping and informed decision-making! Dive into a treasure trove of insights and reviews covering everything from the hottest toys that spark joy in your little ones to the latest electronic gadgets that simplify your life. Explore our comprehensive guides on stylish home furnishings, discover smart tips for buying a home or enhancing your living space with creative improvement ideas, and get the lowdown on the best cars through our detailed auto reviews. Whether you’re making a major purchase or simply seeking inspiration, the Consumer Corner is here to empower you every step of the way—unlock the keys to becoming a smarter consumer today!
Automotive
Gas prices have a $5 tipping point: New research shows when Americans start looking at EVs
Gas prices have a $5 tipping point: New research shows when Americans start looking at EVs
(Tiffany Miller for Hyundai) There is a moment at the gas pump when the number staring back at you stops feeling routine.
You expect the total to land somewhere familiar. And then, one day, it doesn’t. Not dramatically higher. Just high enough to feel different. Enough to make you pause before tapping your card.
According to new research from Hyundai Motor America, that moment is not hypothetical. For more than a third of American drivers, it has already happened. And for many, once it does, something shifts that does not quite shift back.
For 42% of Americans, pulling up to a pump now brings frustration or outright dread. Most have made peace with the routine, even if 39% describe their gas spend as “frustrating but expected.”
The experience at the pump hasn’t changed. The emotional weight of it has.
Most drivers have a number in their head where the math shifts. For 23% of those surveyed, $5 per gallon is where they would seriously start considering alternatives to a gas-powered vehicle. Not everyone will be moved by price, and 29% say they would not consider alternatives based on gas costs at all. But for a meaningful share of Americans, the tipping point is specific. It is a number on a sign, and many have seen it before.
More than one-third of Americans surveyed say a recent fill-up has already prompted them to research electric vehicles, and 23% say it has happened more than once.
What comes next is rarely dramatic. Some compare models or brands. Some search online. Some find themselves on an automaker’s website, further along than they expected to be. Most do not act on this impulse right away. But for a growing number, the pump is where the question starts.
The shift is real but uneven. If gas prices rose significantly and stayed high, 46% of those surveyed say they would be likely to seriously research an EV. Yet most Americans are still somewhere between curious and committed.
The pitch for electric vehicles is simple. Never stop for gas again. Nearly half of Americans say they would absolutely take that deal.
The transition is not frictionless. Charging access and range anxiety remain the top concern for 28% of potential buyers, and simple comfort with the status quo runs just as deep.
The desire to leave the pump behind is real. So is everything standing in the way.
The move toward electric vehicles is often framed as a long-term decision made with spreadsheets and incentive calculators, but for many Americans, it begins somewhere smaller. A routine fuel stop. A number that lands differently. A moment of hesitation before the receipt prints.
Methodology
Hyundai Motor America commissioned Atomik Research to conduct an online survey of 1,000 adults throughout the United States. The margin of error is plus or minus 3 percentage points at a 95% confidence level. Fieldwork was conducted between April 3 and April 6, 2026.
Atomik Research, part of 4media group, is a creative market research agency.
Photo courtesy of Shutterstock (woman at gas pump)
SOURCE:
Hyundai
Welcome to the Consumer Corner section of STM Daily News, your ultimate destination for savvy shopping and informed decision-making! Dive into a treasure trove of insights and reviews covering everything from the hottest toys that spark joy in your little ones to the latest electronic gadgets that simplify your life. Explore our comprehensive guides on stylish home furnishings, discover smart tips for buying a home or enhancing your living space with creative improvement ideas, and get the lowdown on the best cars through our detailed auto reviews. Whether you’re making a major purchase or simply seeking inspiration, the Consumer Corner is here to empower you every step of the way—unlock the keys to becoming a smarter consumer today!
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