Kroger and Albertsons Spend More Than $800 Million on Merger Fees
- Merger-related costs typically include fees for advisers
- Trials later this summer will decide the outcome of the deal
Shoppers at a Safeway grocery store in Scottsdale, Arizona. If the deal goes through, banners from Safeway and Vons to Ralphs and Dillons would unite under one umbrella across 48 states and Washington, DC.
Photographer: Ash Ponders/BloombergKroger Co. and Albertsons Cos. have spent more than $800 million on fees to lawyers, bankers and advisers for their proposed merger, underscoring the high costs of trying to complete the largest ever tie-up between two US grocery chains.
The merger is facing five legal challenges, including a federal court challenge in Oregon, two state lawsuits in Colorado and Washington and an administrative trial in the Federal Trade Commission’s in-house court. A group of consumers also unsuccessfully sued over the deal last year. A preliminary injunction hearing is set to start at the end of August.