The announcement comes just a day after the proposed merger was rejected in two courts.
Albertsons has decided to abandon its plans to merge with Kroger following rejections from two courts. The company is taking legal action against Kroger, alleging that Kroger did not adequately strive to obtain regulatory clearance for the .6 billion deal.
U.S. District Court Judge Adrienne Nelson issued a preliminary injunction blocking the merger Tuesday after holding a three-week hearing in Portland, Oregon. Then 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.
On Wednesday Albertsons said that Kroger failed to exercise “best efforts” and to take “any and all actions” to secure regulatory approval of the companies’ agreed merger transaction.
Shares of Albertsons rose more than 2% before the market open, while Kroger’s stock declined slightly.
