In a legal battle concerning the proposed acquisition of Kroger Company (NYSE:KR) over rival Albertsons Companies Inc (NYSE:ACI), a Colorado court has reportedly scheduled a preliminary injunction hearing slated for mid-August.

This precedes a U.S. government antitrust challenge against the deal, according to a report from Bloomberg.

Judge Andrew Luxen of Denver District Court announced that the hearing would take place from Aug. 12-22, a fortnight ahead of a federal court hearing on the Federal Trade Commission's (FTC) attempts to block the merger.

The U.S. Federal Trade Commission's effort to halt the merger is slated for trial in Oregon at the end of August.

Matthew Wolf, representing Kroger, mentioned a potential "enhanced divestiture package" with C&S Wholesale Grocers Inc. This proposal aims to address concerns raised by the Colorado Attorney General's office, awaiting further details.

Arthur Biller from Colorado's legal team reportedly expressed uncertainty about receiving the revised remedy proposal, emphasizing the ongoing legal complexities surrounding the merger.

The merger agreement, with an outside date of Oct. 9, presents financing challenges if extended beyond that, although Kroger remains open to the idea, according to Wolf.

Price Action: KR shares are trading lower by 0.02% at $55.95 in premarket on the last check Tuesday.

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