Wilmington, Delaware - Albertsons announced Wednesday that it is terminating its proposed $25 billion mega-merger with Kroger and will sue the supermarket giant after the deal was blocked in court.

The lawsuit, filed in a Delaware court, accuses Kroger of "willful" breach of contract in failing to exercise "best efforts" to close the deal, including by not offering to divest assets "necessary for antitrust approval," said an Albertsons press release.

The chain said it will additionally seek billions of dollars in damages against Kroger.

The move comes a day after rulings by a federal court in Oregon and a state court in Washington blocked the deal, following arguments by the Federal Trade Commission that the deal would harm consumers.

In a pair of statements released by Albertsons, the Boise, Idaho supermarket chain said it was "disappointed" by the court ruling as it squarely placed blame for the deal's collapse on Kroger.

Albertsons's General Counsel Tom Moriarty said the company will seek billions of dollars in damages because Kroger "acted in its own financial self-interest, repeatedly providing insufficient divestiture proposals that ignored regulators' concerns."

"Albertsons' shareholders have been denied the multi-billion-dollar premium that Kroger agreed to pay for Albertsons' shares and have been subjected to a decrease in shareholder value on account of Albertsons' inability to pursue other business opportunities as it sought approval for the transaction," the company said.

"Albertsons also seeks to recover for the time, energy and resources it invested in good faith to try to make the merger a success."