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The judge said that the companies could pursue a merger at a later date if deemed lawful in administrative proceedings.

A federal judge has granted the Federal Trade Commission’s request for a preliminary injunction halting a proposed merger between supermarket chains Albertsons and Kroger.

“On balance, the Court finds that both qualitative and quantitative evidence shows that defendants engage in substantial head-to-head competition and the proposed merger would remove that competition,” Oregon District Judge Adrienne Nelson said in an order on Dec. 10.

“As a result, the proposed merger is likely to lead to unilateral competitive effects and is presumptively unlawful.”

The companies announced their intention to merge in October of 2022, with Kroger proposing to acquire Albertsons for approximately $24.6 billion.

Nelson added that her order “leaves open the possibility that they may pursue the merger at a later date should it be deemed lawful in the administrative proceedings.”

This is a developing story and will be updated.