Washington Sues to Stop Albertsons $4 Billion Dividend Plan
(Bloomberg) -- Washington sued Albertsons Cos. to stop the grocery chain from paying $4 billion to shareholders as a special dividend before state and federal antitrust reviews of its potential merger with rival Kroger Co.
The state accused Albertsons and Kroger in the lawsuit of running afoul of its antitrust and consumer protection laws. Bob Ferguson, the state’s attorney general, plans to file a request for a temporary restraining order to block Albertsons from handing out the dividend while the legal fight proceeds, his office said in a statement.
“Paying out $4 billion before regulators can do their job and review the proposed merger will weaken Albertsons’ ability to continue business operations and compete,” Ferguson said.
Albertsons had announced the dividend after agreeing to merge with Kroger in a deal valued at $24.6 billion. In an Oct. 28 letter reviewed by Bloomberg, the supermarket chain told several attorneys general, including Ferguson, that the payment is independent of the merger and part of a plan to return capital to shareholders. The deal is expected to close in early 2024.
https://www.msn.com/en-us/news/politics/washington-sues-to-stop-albertsons-4-billion-dividend-plan/ar-AA13CAlT