A federal judge has ruled in favor of federal and state regulators who challenged Kroger’s planned $25 billion acquisition of Albertsons. The Tuesday afternoon decision to grant a preliminary injunction only temporarily blocks the merger – but it may doom the deal for good.

The Federal Trade Commission, joined by attorneys general in Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, Wyoming and the District of Columbia, had sought an injunction to suspend the deal until after a full review could be completed, to determine if the proposed combination would violate antitrust laws and stifle competition.

Citing the plaintiffs’ likelihood of success in proving the deal is anticompetitive, the judge granted the injunction that stops the merger in its tracks for now.

And possibly for good, as Kroger had signaled it would abandon the deal if an injunction were to be granted.  Here’s the Coupons in the News article.