Kroger settles C&S lawsuit over failed Albertsons merger

American grocery store chain Kroger has reached a settlement with C&S Wholesale Grocers over a lawsuit tied to the collapse of the proposed $24.6 billion merger between Kroger and Albertsons, SuperMarket News reported. Terms of the settlement, confirmed by the company on Monday, were not disclosed.

C&S filed the suit in Delaware State Superior Court in March, seeking a $125 million breakup fee it claimed was owed following the deal’s termination. As part of the original merger plan, C&S had agreed to purchase 579 stores and other related assets from Kroger and Albertsons for approximately $2.9 billion. The divestiture was intended to address multiple antitrust concerns posed by federal regulators.

The Federal Trade Commission ultimately blocked the merger, questioning C&S’s ability to manage its extensive network of stores.

“We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward," said Ron Sargent, chairman and CEO of Kroger.

Similarly, a statement by C&S stated that the company is pleased to have reached this resolution with Kroger. “We are looking forward to our continued transformation journey,” a spokesperson said.

In the months since the merger’s collapse, C&S has expanded its acquisition activity. The company acquired a stake in Southeastern Grocers, parent of Winn-Dixie, and reached a deal to purchase SpartanNash, which is expected to close in late 2025. C&S is also investing in automation in the Northeast and expanding its West Coast footprint through its GreenBox brand. Earlier this year, the company closed a warehouse in Baldwin, Florida.

A separate lawsuit filed by Albertsons against Kroger remains unresolved. Albertsons is seeking a $600 million termination fee, along with additional compensation for what it describes as “multiple years and hundreds of millions of dollars” spent pursuing regulatory approval. 

Kroger has denied the claim and accused Albertsons of secretly working with C&S to pressure additional store divestitures.

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