Kroger CEO Rodney McMullen has stated that the company is prepared to take legal action if regulators do not approve the proposed $24.6 billion merger with Albertsons.
“Albertsons and Kroger both committed, as part of the original agreement, that if for some reason it was litigated, we would litigate. And we committed to that in advance,” McMullen told Bloomberg in a video interview at its New York headquarters.
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Indeed, the merger agreement unveiled on Oct. 14 includes a provision saying that Kroger would take legal action if regulators or other parties sought to block the transaction. Listed under “Regulatory Matters,” the section of the merger document reads as follows:
“If any proceeding is instituted (or threatened) challenging the merger as violating any antitrust law or if any decree, order, judgment, or injunction (whether temporary, preliminary, or permanent) is entered, enforced, or attempted to be entered or enforced by any governmental entity that would make the merger illegal or otherwise delay or prohibit the consummation of the merger, parent and its affiliates and subsidiaries shall take any and all actions (i) to contest and defend any such proceeding to avoid entry of, or to have vacated, lifted, reversed, repealed, rescinded, or terminated, any decree, order, judgment, or injunction (whether temporary, preliminary, or permanent) that prohibits, prevents, or restricts consummation of the transactions and (ii) to eliminate each and every impediment under any antitrust law to close the transactions prior to the Outside Date [for finalizing the transaction].”
