Lawyers for Albertsons and Kroger will likely meet in the courtroom again — but unlike the recent federal trial in Oregon, they’ll be on opposing sides.

The day after judges in Oregon and Washington blocked a $24.6 billion merger agreement between the two grocery chains, Albertsons sued Kroger for breach of merger, claiming Kroger officials didn’t do enough to appease regulators. Kroger denies Albertsons’ assertions.

The two could fight it out in a Delaware courtroom, where the suit was filed — but implications of the merger breakdown and subsequent legal battle are likely to be felt in the Pacific Northwest.

Albertsons is headquartered in Boise, Idaho, but operates more than 20 stores in Oregon. Albertsons is also the parent company for Safeway, which has nearly 100 stores across the state. Kroger is headquartered in Cincinnati and owns more than 50 Fred Meyer and QFC stores in Oregon.

“Albertsons is seeking billions of dollars in damages from Kroger to make Albertsons and its shareholders whole,” the company said in a written statement. “Albertsons’ shareholders have been denied the multi-billion-dollar premium that Kroger agreed to pay for Albertsons’ shares and have been subjected to a decrease in shareholder value on account of Albertsons’ inability to pursue other business opportunities as it sought approval for the transaction.”

Leaders from Albertsons and Kroger announced in October 2022 that they would pursue a merger. The two argued the combined company would be in a better position to compete against Walmart and other large food retailers.

Oregon judge blocks merger of Kroger and Albertsons

However, the Federal Trade Commission sued to halt the merger, saying it would hurt competition and raise prices. During a three-week hearing in Portland that ended in September, leaders from Albertsons said if the merger didn’t go through the company would have to lay off workers and close stores.

On Tuesday, judges in both Oregon and Washington sided with the FTC. Less than 24 hours later, Albertsons announced it was suing Kroger for failing to secure regulator approval.

“Kroger looks forward to responding to these baseless claims in court,” a Kroger spokesperson said in a written statement. “We went to extraordinary lengths to uphold the merger agreement throughout the entirety of the regulatory process and the facts will make that abundantly clear.”

On Wednesday, spokespeople for both Albertsons and Kroger declined to say if stores would be closing or if workers would be laid off in Oregon due to the failed merger.

Separately, on Dec. 6, Albertsons leaders notified Oregon officials that the company was closing its Roseburg store and laying off 87 employees. The store will close to the public in February.

The Delaware Department of Technology and Information (DTI)’s Delaware Broadband Office (DBO) and the office of Governor John Carney have awarded Comcast and Verizon with Broadband Equity, Access, and Deployment (BEAD) Program funding of $17.4 million. The goal is to bring broadband to more than 5,600 unserved or underserved homes and businesses in the state.

Delaware will receive a total of $107 million in BEAD funding. It is the second state — after Louisiana — to announce its BEAD awards. 

In all, 5,635 addresses in Kent (1,712 addresses), New Castle (556 addresses), and Sussex (3,367 addresses) counties will get service. 

The DBO received 21 proposals from five broadband providers to build out services to eight grant areas across the state. The proposals were assessed on cost, speed to deployment, workforce readiness/development, and affordability.

The BEAD Program is part of the Broadband Infrastructure Law. Delaware’s initial award is provisional pending a public comment period that begins today and final approval by the National Telecommunication and Information Administration (NTIA), the press release says.

“In order to fully participate in the digital economy, everyone needs access to high-speed internet,” Chief Information Officer Greg Lane said in the announcement of the Delaware BEAD funding. 

“This BEAD funding will help us to continue the work already begun through the American Rescue Plan Act to bridge the digital divide and ensure that Delawareans have access to affordable and reliable service.”

In addition to the BEAD grants, Comcast and Verizon also are receiving American Rescue Plan Act (ARPA) funding for projects in Delaware. The two carriers — along with Mediacom — were winners of $33 million to connect more than 6,200 locations in the state. As of late October, 5,859 connections were completed.

In November, Louisiana announced awards of $1.355 billion aimed at making broadband available to all eligible unserved and underserved locations in the state, including about 95% to 96% that will receive fiber broadband.

Additional information about Delaware broadband, including links to state funding resources, previous awards made, state specific Telecompetitor coverage and more, can be found on the Telecompetitor Broadband Nation webpage for the state.