Popular Texas Grocery Store Loses $1B on Failed Merger Attempt

DALLAS, Texas (KPEL News) — Kroger, one of the most recognizable grocery store brands in Texas, just revealed a stunning price tag for a business deal that never even happened.

According to a report from GroceryDive, the grocery giant spent more than $1 billion trying—and ultimately failing—to merge with competitor Albertsons. And the worst part? That figure may still grow.

A Billion-Dollar Bust

In a filing submitted to federal regulators earlier this month, Kroger laid out the full scope of its losses in its failed pursuit of Albertsons—a deal originally valued at $24.6 billion.

In just the last year alone, Kroger racked up $684 million in costs, mostly from legal fees, consultants, and financing arrangements meant to get the merger across the finish line. That’s on top of $316 million spent in 2023 and another $44 million the company burned through in 2022.

Add in $34 million in interest expenses on a $10.5 billion loan Kroger took out to fund the deal, and it becomes clear: this wasn’t just a misstep—it was a massive financial gamble that failed to pay off.

What Happened?

The merger between Kroger and Albertsons was meant to create a grocery powerhouse. But the effort was met with fierce opposition from federal and state regulators, including the Federal Trade Commission and attorneys general from Washington and Colorado.

Critics argued the deal would limit competition and hurt consumers. A federal judge agreed and blocked the deal in December 2024. With the courts against it, Kroger had no choice but to abandon the merger.

Now, the grocery giant finds itself not only with sunk costs but also entangled in lawsuits from its former would-be partner and others involved in the deal.

What It Means for Texas

While the billion-dollar figure grabs national headlines, this story hits home in Texas, where Kroger maintains a strong footprint across cities like Houston, Dallas, Austin, and beyond. If you're a Texan who shops there, you’re watching this story not as a business analyst—but as a customer who might be asking whether your favorite store is going to change.

Kroger has said it remains financially sound, and for now, no store closures are planned as a result of the failed merger. But when over $1 billion evaporates without a single benefit delivered, it's fair to ask how that affects operations, pricing, and future growth in one of the chain’s most loyal markets.

Legal Fallout Still Unfolding

The financial losses aren’t the end of the story. Albertsons is suing Kroger, claiming it didn't do enough to convince the FTC to approve the deal and is now seeking a $600 million termination fee.

Meanwhile, C&S Wholesale Grocers, which had planned to acquire nearly 600 stores in a spinoff arrangement, also wants $125 million in termination fees. Kroger says neither company is entitled to that money, accusing them of violating terms in the merger agreement.

The courtroom drama could drag on even longer—and the price tag could climb higher.

Can Kroger Recover?

Kroger’s failed merger with Albertsons wasn’t just a high-profile corporate misstep—it was a billion-dollar financial black hole. For Texans who shop at Kroger every week, the next few months will be worth watching. The company says it’s moving forward, but it’s doing so with more than $1 billion in financial wounds and a trail of legal headaches still looming.

It’s a sharp reminder that even in the grocery business, big bets come with big risks—and not even the biggest names in the industry are immune to billion-dollar losses.