10:35 AM EST, 12/11/2024 (MT Newswires) -- (Adds details in the third to sixth paragraphs and Kroger's ( KR ) response to a request for comment in the seventh.)

Albertsons ( ACI ) said Wednesday it terminated its merger agreement with Kroger ( KR ) and filed a lawsuit against the company for allegedly breaching the agreement after a federal judge in Oregon blocked the deal on Tuesday.

"Kroger ( KR ) willfully breached the merger agreement in several key ways, including by repeatedly refusing to divest assets necessary for antitrust approval, ignoring regulators' feedback, rejecting stronger divestiture buyers and failure to cooperate with Albertsons ( ACI )," the company said.

Albertsons ( ACI ) said it is seeking "billions of dollars in damages" from Kroger ( KR ) and is entitled to an "immediate" $600 million termination fee.

"Albertsons ( ACI ) is [also] entitled to relief reflecting the multiple years and hundreds of millions of dollars it devoted to obtaining approval for the merger, along with the extended period of unnecessary limbo Albertsons ( ACI ) endured as a result of Kroger's ( KR ) actions," Albertsons ( ACI ) said, adding that it further seeks to recover certain expenses and costs.

Albertsons ( ACI ) also said that its board intends to raise its quarterly cash dividend to $0.15 from $0.12 per share, expected to take effect starting with the next quarterly dividend declaration.

The board also approved a stock buyback program of up to $2 billion, including the existing authorization, Albertsons ( ACI ) said.

"Albertsons' ( ACI ) claims are baseless and without merit," a Kroger ( KR ) spokesperson told MT Newswires via email. "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."

Price: 18.53, Change: +0.02, Percent Change: +0.11