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Albertsons cancels Kroger merger and demands billions of dollars in damages in lawsuit

Albertsons cancels Kroger merger and demands billions of dollars in damages in lawsuit

Albertsons has canceled its planned $24.6 billion merger with Kroger after courts blocked the deal announced two years ago.

Albertsons also filed a breach of contract lawsuit against Kroger on Wednesday, claiming Kroger didn’t do enough to get regulatory approval of the proposed merger. Albertsons is seeking billions in damages.

Albertsons operates nine supermarkets in the El Paso region, including one that opened last week in the Horizon City region in far eastern El Paso County. The company also operates three stores in nearby Las Cruces, New Mexico.

It’s unknown how the failed merger might affect El Paso-area operations. An Albertsons spokesman said company officials do not comment on operations at local markets.

The newest Albertsons at 13671 Eastlake Blvd., bordering Horizon City, opened Dec. 6. Albertsons operates nine stores in the El Paso area and three in Las Cruces, New Mexico.

Kroger does not have stores in the El Paso-Las Cruces area but does have stores in other parts of Texas.

Kroger officials said in a statement that the company denies Albertsons’ allegations and will respond in court.

“This is clearly an attempt to shift responsibility following Kroger’s written notice of Albertsons’ multiple breaches of the agreement and to demand payment of the merger break fee to which they are not entitled.”

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