Kroger and Albertsons have agreed to temporarily suspend their $25 billion merger while legal challenges from regulators continue. The temporary halt comes as a lawsuit filed by Colorado progresses, which eliminates the need for a preliminary injunction hearing that was set for next month.

Colorado Attorney General Phil Weiser announced, “The trial is scheduled to begin on September 30, and we are eager to argue that this merger would reduce competition, affect food prices, jobs, and consumer choice.”

A Kroger spokesperson told FOX Business that the delay is positive news, as it removes the necessity for the preliminary injunction hearing in Colorado originally slated for August 12. The spokesperson added, “We are committed to defending the merger in court, demonstrating how the union of Kroger and Albertsons will deliver significant benefits, such as lower prices, greater choices for families, and enhanced job opportunities with stable, well-paying positions.”

To address regulatory concerns, Kroger and Albertsons have proposed selling nearly 600 locations to C&S Wholesale Grocers. This sale is part of their strategy to secure approval for what would be the largest merger in grocery industry history. Initially, they planned to sell 413 stores, but this number increased to 579 in April, along with divesting six distribution centers, a dairy plant, certain brands, and other non-store assets.

Kroger CEO Rodney McMullen assured in April that the merger plan aims to avoid store closures and job losses, maintaining all frontline associates’ employment, honoring existing collective bargaining agreements, and preserving industry-leading health care, pension benefits, and wages.

However, critics argue that the merger could lead to store closures, reducing consumer access to essential goods, and potentially increasing prices for food and other supermarket products.