Kroger Co. CEO Rodney McMullen talked publicly Dec. 5 about where things stand on the supermarket giant’s planned $24.6 billion acquisition of rival Albertsons Cos. Inc. that’s being challenged by regulators and what would be next if the deal doesn’t go through.

The grocers both signaled that they are in strong financial shape and said they would devote billions of dollars to repurchase shares from investors.

Kroger is buying back billions of dollars in stock, putting to use some of the capital it was planning to use in a megadeal.

The Boise-based supermarket chain said Kroger failed to exercise “best efforts” to secure regulatory approval of the merger.

Albertsons called off its proposed sale to Kroger and sued the rival grocer for billions of dollars the morning after a federal judge in Portland blocked the merger. The deal would have combined the nation’s largest and second-largest traditional grocery chains into a colossus and extended a lifeline to Albertsons.

Albertsons announced Wednesday it is pulling out of its plans to merge with Kroger, citing two court rulings on Tuesday barring the transaction.

Albertsons and Kroger terminated their $25 billion merger plan on Wednesday after courts blocked the deal, with the former suing its rival and alleging a breach of contract that led to the deal's demise.

This comes a day after the proposed merger between the supermarket giants floundered after judges overseeing two separate cases both halted the deal.

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