Albertsons files response to Kroger’s counterclaims

Albertsons has filed in the court of Chancery of the State of Delaware its response to Kroger’s counterclaims, related to Kroger’s failure to exercise “best efforts” and to take “any and all actions” to secure regulatory approval of the companies’ agreed merger transaction. 

An Albertsons spokesperson provided Drug Store News with the following statement:

“Kroger’s Counterclaims defy the plain facts of the parties’ course of dealing and are self-evidently designed to divert attention from Kroger’s own misconduct. Albertsons worked steadfastly to increase the Merger’s chance of success, even offering to contribute roughly $1-$2 per share in value to allow Kroger to enhance the divestiture package."

[Related: Kroger files legal response, brings counterclaims against Albertsons]

The statement continued, "At every turn, Kroger ignored Albertsons’ input and refused to take any meaningful steps to improve its facially deficient divestiture proposals that disregarded feedback from regulators. Instead, Kroger – under the leadership of former CEO Rodney McMullen – advanced a self-serving strategy that impaired Kroger’s credibility and doomed the prospects of a negotiated resolution with regulators. Kroger compounded these strategic errors by prioritizing its own financial interests over the selection of a divestiture package that could plausibly pass regulators’ scrutiny. We remain focused on returning value to Albertsons’ shareholders and look forward to presenting our case in court.”

A Kroger spokesperson provided DSN with the following statement: “As Albertsons continues to deflect responsibility for its actions that ultimately undermined the proposed merger, Kroger is focused on delivering exceptional value to the communities we serve. We look forward to presenting our case in court where we intend to pursue our claims to the full extent of the law.”