Albertsons said Wednesday that it has terminated a $25 billion merger agreement with Kroger and will sue the grocery giant, alleging the company didn’t do enough to get the deal done.

Judges in Washington and Oregon on Tuesday blocked the deal, delivering a win to federal regulators and consumer advocates who argued the merger could harm competition, consumers and workers and push prices up.

“Rather than fulfill its contractual obligations to ensure that the merger succeeded, Kroger acted in its own financial self-interest, repeatedly providing insufficient........

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