Albertsons terminates US$25-billion merger with Kroger, sues rival for alleged breach of contract

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Albertsons said it was suing due to Kroger’s failure to take ‘any and all actions’ to get the deal approved

after courts blocked the deal and sued its rival, alleging a breach of contract that led to the deal’s demise.

Albertsons is seeking billions of dollars in damages along with the $600-million termination fee. Kroger did not immediately respond to a request for comment on the lawsuit. Two different courts blocked the deal on Tuesday, siding with the Federal Trade Commission, which moved to stop the deal, and argued in a trial that the merger would eliminate competition between the traditional grocery chains, causing higher prices and reducing leverage for unionized workers.

The FTC sued along with attorneys general from eight states and the District of Columbia. Colorado, like Washington, sued on its own to block the deal.

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