"Kroger remains focused on serving our customers and running great stores across the U.S." The dispute originated from a 2022 plan by Kroger and Albertsons to combine operations in a deal that would have created one of the largest U.S. grocery chains. To address anticipated antitrust concerns from federal and state regulators, the companies agreed to divest a number of stores and related assets to C&S Wholesale Grocers, one of the nation's largest grocery wholesalers. C&S was slated to acquire hundreds of stores and other assets under a $2 billion transaction announced alongside the merger. But in 2024, regulators moved to block the Kroger-Albertsons deal, citing potential harm to competition and consumers. The companies subsequently terminated the merger agreement, and Kroger withdrew from its planned divestiture to C&S. In response, C&S filed suit seeking a $125 million termination fee it argued was owed under the terms of their divestiture agreement.