Albertsons gives up on Kroger combination, sues grocery chain for failing to secure deal

Albertsons is giving up on its combination with Kroger a day after it was rejected in two courts and it is suing the grocery chain, saying it didn’t do enough to secure regulatory approval for the $24.6 billion agreement.

U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the combination Tuesday after holding a three-week hearing in Portland, Oregon. Then Judge Marshall Ferguson in Seattle issued a permanent injunction barring the combination in Washington after concluding it would lessen competition in the state and violate Washington’s buyer-protection laws.

On Wednesday Albertsons said that Kroger failed to exercise “best efforts” and to receive “any and all actions” to secure regulatory approval of the companies’ agreed combination swap.

Shares of Albertsons rose more than 2% before the trade open, while Kroger’s stake declined slightly.