Kroger and Albertsons’ plan for the largest U.S. supermarket merger in history has crumbled. The two companies accusing each other of not doing enough to push their proposed alliance through, and Albertsons pulled out of the $24.6 billion deal on Wednesday.

Summary

Albertsons ended its proposed $24.6 billion merger with Kroger, citing Kroger’s alleged failure to secure regulatory approval and filing a lawsuit seeking $600 million in termination fees and additional damages.

The breakup follows court rulings in Oregon and Washington blocking the merger over antitrust concerns, including reduced competition and higher consumer prices.

Kroger denied Albertsons’ claims, blaming the latter for breaching the merger process.

Initially proposed in 2022 to compete with giants like Walmart, the deal’s collapse leaves Albertsons facing challenges due to debt and higher pricing structures.