Albertsons $4B payout to shareholders amid merger paused
A judge in Washington state has temporarily stopped Albertsons from paying a $4 billion dividend to investors as part of the grocery retailer’s proposed merger with rival Kroger
SEATTLE (AP) — A judge in Washington state has temporarily blocked Albertsons from paying a $4 billion dividend to investors as part of the grocery retailer’s proposed merger with rival Kroger.
On Thursday, King County Superior Court Commissioner Henry Judson approved a motion by state Attorney General Bob Ferguson to temporarily block the dividend until the court can more fully consider whether the payment violates antitrust laws, The Seattle Times reported.
The dividend was scheduled to be paid Monday.
The proposed merger would combine two of the nation’s largest grocery chains. Some critics worry that could mean reduced competition, higher food prices and the closure of under-performing locations, including some in Washington state. Albertsons, which owns Safeway, and Kroger, which owns QFC and Fred Meyer, are among the biggest players in Washington.
