After court loss, Albertsons backs out of merger with Kroger, sues grocery chain

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Albertsons says it is giving up on joining forces with Kroger and has filed a lawsuit, accusing the chain of failing to do enough to win government approval for the deal.

Plans for the largest grocery merger in American history are over. A day after a federal judge delivered a serious blow to the merger, Albertsons announced Wednesday it was giving up on the controversial deal to join forces with its competitor Kroger and sued the chain, alleging it failed to do enough to win government approval for the $24.6-billion agreement.

' A Kroger representative did not immediately respond to a request for comment. Albertsons decision to end its corporate courtship and sue its would-be partner came on the heels of a ruling by U.S. District Court Judge Adrienne Nelson, who on Tuesday issued a preliminary injunction blocking the merger, finding it would quash competition and leave consumers in many parts of the country without meaningful choices when shopping for food.

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