Albertsons terminated its $25 billion bid to merge with Kroger on Wednesday after courts blocked the deal and sued its rival, alleging a breach of contract that led to the deal's demise. The formal termination ends a two-year effort by the chains to combine that regulators argued would lead to higher prices for shoppers.

Albertsons announced Wednesday it is pulling out of its plans to merge with Cincinnati-based Kroger, citing two court rulings on Tuesday barring the transaction. Also, it disclosed it's suing Kroger "for billions" for botching the deal and dooming the companies' bid for regulatory approval.

The supermarket chain had tried to join forces with Kroger, but judges sided with federal and state regulators who charged that the merger would reduce competition.