Judges in Oregon and Washington separately blocked a $24.6 billion merger between Kroger and Albertsons on Tuesday. Both rulings found that a merger between the two grocery chains would significantly reduce competition.

In a 71-page order, U.S. District Court Judge Adrienne Nelson found that “the evidence shows that the defendants face significant direct competition and that the proposed merger would eliminate that competition.” Therefore, the proposed merger is likely to be one-sided competition effects and is presumably unlawful.”

The injunction, which comes after a three-week hearing that ended last September in Portland, is a victory for the Federal Trade Commission as well as seven states – including Oregon – and the District of Columbia that filed suit against the merger in February had. In its lawsuit, the commission asked Nelson to block the deal until an internal FTC administrative law judge could review the effects of the merger.

The deal was too blocked separately by a state court judge in Washington Tuesday.

Despite the rulings, there is still a chance the deal will go through. In the Pacific Northwest, Kroger operates Fred Meyers and QFC stores, and Albertsons operates its own branded supermarkets and Safeway stores.

“The fierce competition between these two grocery giants has benefited millions of American consumers through lower prices on groceries and household items,” the FTC and states wrote in their lawsuit. “If approved, the proposed takeover would destroy that competition and likely make it more expensive for millions of families to put food on the table.”

In response, Kroger argued the lawsuit was “willfully blind to the realities of current grocery competition” and said the FTC’s “view of the relevant market has no basis in the real world.” The grocer argued the merger would allow the company to compete nationwide with retail giants like Costco, Walmart and Amazon.

In its statement in Portland, Albertsons Nelson warned that it may have to lay off workers, close stores and even exit some markets if the merger is not allowed to go ahead. Together, the companies employ around 710,000 people.

Kroger and Albertsons announced plans to merge in October 2022.

Kroger operates 2,700 stores in 35 states and D.C., according to filings in Oregon. That includes Fred Meyer, which has 51 stores in Oregon and 59 in Washington. Albertsons operates 2,269 stores in 34 states and D.C., including 283 Safeway stores in the Pacific Northwest.

As part of the proposal, Kroger said it would spin off nearly 600 stores in places where their locations overlap.

But Nelson said even that caveat would not adequately address concerns that the merger would stifle competition. “There is ample evidence that the size of the divestiture is not sufficient to adequately compete with a merged Kroger-Albertsons,” she wrote.

The verdict is an important decision for Nelson, who was This was confirmed to the Bundesbank less than a year ago after a long and distinguished legal career in Oregon.

Henry Liu, director of the FTC’s Bureau of Competition, called the ruling a victory, and not just for consumers.

“This is also a victory for thousands of hard-working union employees who are protecting their hard-earned paychecks by ensuring that Kroger and Albertsons continue to compete for workers through higher wages, better benefits and improved working conditions,” Liu said in a statement.

Outgoing Oregon Attorney General Ellen Rosenblum, a Democrat whose office helped litigate the case, said the decision will help preserve competition.

“Judge Nelson’s ruling reinforces our argument that the proposed merger would harm consumers and workers alike,” Rosenblum said in a statement.

Sen. Ron Wyden, D-Oregon, the outgoing chairman of the Senate Finance Committee, welcomed the ruling, saying it blocks “ill-conceived consolidation.”

“I’m glad the court put this monster deal on hold because, in addition to raising grocery prices for shoppers already on an economic tightrope, it would have made it much more difficult for Oregonians and for workers at both supermarket chains “To find a pharmacy “strives for fairer wages and better working conditions,” Wyden said in a statement.

The Associated Press contributed to this story.