Kroger, C&S Settle $125 Million Dispute Tied to Albertsons Deal

Kroger Co. and C&S Wholesale Grocers LLC have ended their $125 million court fight over the collapse of a divestiture deal linked to Kroger’s failed $24.6 billion merger with Albertsons Cos.

Cincinnati-based Kroger disclosed a confidential settlement Monday, saying the accord would restore “friendly” relations between the two supermarket chains. The transaction, involving the nearly $3 billion acquisition of almost 600 stores, fell apart after state and federal judges rejected the Kroger-Albertsons merger in December.

The lawsuit, filed by C&S in February, said Kroger offered no reason for refusing to pay a $125 million breakup fee, “violating the clear ...