Kroger and C&S Wholesale Grocers have resolved a lawsuit C&S filed earlier this year seeking a $125 million termination fee connected to Kroger’s unsuccessful attempt to merge with Albertsons. The settlement was disclosed in a joint filing on Friday in Delaware Superior Court.
The filing stated that all claims in the case have been resolved, and the matter was dismissed with prejudice, barring C&S from bringing the same claims against Kroger in the same court. The terms of the settlement remain confidential, and neither company confirmed whether a payment was made.
Kroger Chairman and interim CEO Ron Sargent addressed the settlement in a statement released Monday morning through the company’s corporate press office. “We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward. Kroger remains focused on serving our customers and running great stores across the U.S.,” Sargent said.
C&S issued a separate statement by email to media outlets, saying it was “pleased to have reached this resolution” but did not provide further details.
C&S brought the lawsuit in March, alleging Kroger’s inability to complete the planned merger with Albertsons prevented C&S from acquiring nearly 600 supermarkets, access to private label brands, and other assets. The acquisitions were part of a divestiture plan intended to address regulatory concerns. C&S argued that losing those assets triggered Kroger’s obligation to pay the termination fee.
Kroger disputed the claim, contending that C&S breached its agreement by engaging in unauthorized discussions with Albertsons employees regarding the merger arrangement.
The Kroger–Albertsons merger ended late last year after federal and state regulators raised antitrust objections. Following the dissolution of the deal, C&S has expanded through other transactions, including joining an investor group in February to purchase Southeastern Grocers from Aldi and announcing in June an agreement to acquire grocery retailer and wholesaler SpartanNash.
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