A bipartisan group of attorneys general is asking Albertsons to delay a $4 billion payout to its shareholders until they can complete a review of Kroger’s planned acquisition of the grocery chain.it was paying $20 billion to buy Albertsons, the parent company of Jewel-Osco. The deal is expected to close in early 2024, if it is approved by the Federal Trade Commission and the Department of Justice, and survives any court challenges.
“Should any regulatory challenge to the merger succeed, or should the parties abandon the transaction, Albertsons would have to continue to compete with other grocery stores, a goal that its decision to enrich its shareholders to the tune of $4 billion will have made significantly more difficult to accomplish,” the letter said.
The letter was signed by the Democratic attorneys general of Illinois, the District of Columbia, California and Washington and the Republican attorneys general of Arizona and Idaho. Albertsons is based in Boise, Idaho. In a statement, Albertsons said the merger announcement and special dividend mark the successful completion of a strategic review begun in February of the company’s future. The company had nearly $29 billion in assets at the end of September, including $3.4 billion in cash and cash equivalents.