By Matt Grossman

Simon Property Group Inc. and Taubman Centers Inc.'s dispute over the fate of a planned merger will move to a mediation phase that must be completed by the end of next month, according to an order from Judge James M. Alexander of Oakland County, Mich. Circuit Court.

Judge Alexander also ordered the two major retail landlords to begin preparations for a trial. The companies must be ready for a trial by the middle of November, Judge Alexander wrote. The order followed a virtual conference between Simon, Taubman and the judge on Tuesday.

Simon had planned to acquire Taubman in a deal that was announced in February, but the merger disintegrated earlier this month after Simon said that Taubman hadn't responded effectively to the coronavirus pandemic. Simon said that the February deal gave it the right to cancel the agreement if a pandemic occurred and Taubman was disproportionately affected.

After Simon declared the merger terminated, Taubman said it would hold Simon to its obligations under the deal and "vigorously contest Simon's purported termination."

Write to Matt Grossman at matt.grossman@wsj.com