01:04 PM EST, 12/11/2024 (MT Newswires) -- Albertsons Companies ( ACI ) terminated its proposed $25 billion acquisition by Kroger ( KR ) after two courts ruled to block the deal, while the grocery chain sued Kroger ( KR ) for allegedly failing in its effort to secure regulatory approval.

On Tuesday, a federal judge in Oregon blocked the deal, while the King County Superior Court of Washington also issued a similar ruling.

"Given the recent federal and state court decisions to block our proposed merger with Kroger ( KR ), we have made the difficult decision to terminate the merger agreement," Albertsons ( ACI ) Chief Executive Vivek Sankaran said in a statement on Wednesday. "We are deeply disappointed in the courts' decisions."

Kroger's ( KR ) shares were up 0.8% in midday trade while Albertsons ( ACI ) traded 0.2% lower.

Kroger ( KR ) in October 2022 agreed to acquire Albertsons ( ACI ) for a total consideration of $34.10 per share. The deal was initially expected to close in early 2024. In February 2024, the Federal Trade Commission challenged the deal, saying it would eliminate competition and raise grocery prices.

Albertsons ( ACI ) on Wednesday filed a lawsuit against Kroger ( KR ) for what it claims was "willful breach of contract" arising from Kroger's ( KR ) failure to secure regulatory approval. Albertsons ( ACI ) said it is seeking "billions of dollars in damages" due to its inability to pursue other business opportunities throughout the transaction period.

"Kroger's ( KR ) self-serving conduct, taken at the expense of Albertsons ( ACI ) and the agreed transaction, has harmed Albertsons' ( ACI ) shareholders, associates and consumers," Tom Moriarty, Albertsons' ( ACI ) general counsel and chief policy officer, said in a separate statement.

Kroger ( KR ) called Albertsons' ( ACI ) claims "baseless and without merit" in a statement posted to its website. "Kroger ( KR ) refutes these allegations in the strongest possible terms, especially in light of Albertsons' ( ACI ) repeated intentional material breaches and interference throughout the merger process, which we will prove in court," said Kroger ( KR ).

This is "an attempt to deflect responsibility following Kroger's ( KR ) written notification of Albertsons' ( ACI ) multiple breaches of the agreement, and to seek payment of the merger's break fee, to which they are not entitled," Kroger ( KR ) wrote.

Price: 18.50, Change: -0.02, Percent Change: -0.08