Kroger countersues rival Albertsons after demise of $25B merger 

CINCINNATI — Grocery chain Kroger countersued rival Albertsons on Tuesday, escalating a legal fight between the two companies following the demise of their proposed $25 billion merger that was blocked by courts in December.

Albertsons terminated the bid to merge immediately after the deal was blocked and sued Kroger, alleging a breach of contract that led to the deal’s demise.

The formal termination ended a two-year effort by the grocery chains to combine. Regulators had noted that the deal would lead to higher prices for shoppers.

Albertsons was engaging in a campaign with divestiture buyer C&S Wholesale Grocers to pursue its own regulatory strategy, according to Kroger.

In December, Albertsons asked for billions of dollars in damages along with a $600 million termination fee. Kroger had called the claims baseless.

“As a result of its misconduct, Albertsons is not entitled to the $600 million termination fee … nor is Albertsons entitled to the other damages it seeks,” Kroger said.

Albertsons did not immediately respond to a request for comment.