Court allows Albertsons dividend payment ahead of potential merger

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The Washington Supreme Court has cleared the way for grocery store chain Albertsons to pay a $4 billion dividend ahead of a potential merger with Kroger.

The court opted not to hear a lawsuit brought by state Attorney General Bob Ferguson last year. The court said it would hurt the company during regulation processes for the Kroger merger.“The issues raised in our legal challenge are important to grocery workers and hardworking Washingtonians who must access affordable groceries to feed themselves and their families,” Ferguson said in a statement.

“We respect the decision of the Court, but we are surprised and disappointed the Supreme Court decided not to hear this case. That said, I want to be clear: This merger is far from a done deal. My team and I will be conducting a thorough review,” he continued. Kroger's $24.6 billion purchase of Albertsons was announced in October 2022. Kroger CEO Rodney McMullen said Albertsons"brings a complementary footprint" to their brand."Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores," McMullen said in a statement in October.

"This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors," he added.

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Washington state court OKs Albertsons' $4 billion dividend ahead of mergerThe Washington state Supreme Court has brushed aside the final remaining legal hurdle in the way of a $4 billion dividend by Albertsons to its shareholders...
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