Merger would curtail competition for grocery shoppers, Oregon court finds in a decision that could derail the deal.

U.S. District Court Judge Adrienne Nelson issued an order Tuesday granting a preliminary injunction to halt the $25 billion deal. Nelson found that the FTC and several state attorneys general were likely to prevail in their argument that the merger violates antitrust law.

The ruling hands a victory to Biden antitrust enforcers, who said the $20 billion supermarket merger would erode competition and raise prices for consumers.