Albertsons gives up on Kroger merger, files lawsuit against grocery chain

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This comes a day after the proposed merger between the supermarket giants floundered after judges overseeing two separate cases both halted the deal.

Albertsons announced Wednesday that it has given up its merger with Kroger and has filed a lawsuit against the grocery chain. Albertsons filed a lawsuit against Kroger, alleging willful breach of contract in their merger agreement. The complaint, temporarily under seal, accuses Kroger of failing to meet regulatory obligations, including refusing necessary divestitures and disregarding feedback from regulators.

Later Tuesday, Judge Marshall Ferguson in Seattle issued a permanent injunction barring the merger in Washington after concluding it would lessen competition in the state and violate Washington's consumer-protection laws.Kroger and Albertsons said Tuesday they were disappointed in the decision.The Associated Press contributed to this report. This is a developing story, and will be updated.

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