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Washington state court OK’s Albertsons’ merger $4B dividend
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Washington state court OK’s Albertsons’ merger $4B dividend

  • Updated

The 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 ahead of a proposed merger with grocery rival Kroger. The Seattle Times reports the state’s highest court declined Tuesday to review a case against the dividend brought by state Attorney General Bob Ferguson. Ferguson had argued that the payment could financially weaken Albertsons and lead to store closures. Albertsons wants to pay the dividend to shareholders ahead of its proposed $25 billion merger with Kroger, which owns QFC and Fred Meyer. Ferguson says he respects the decision but that the merger is far from a done deal.

National

US lawmakers skeptical grocery merger will mean lower prices

  • By DEE-ANN DURBIN Associated Press
  • Updated

U.S. senators from both parties have expressed skepticism that a proposed merger between grocery giants Kroger and Albertsons will lower prices for consumers. But the CEOs of Kroger and Albertsons insisted Tuesday that there will still be competition. They told a hearing that a merger will help them counter growing rivals like Walmart, Costco and Amazon. Kroger announced its plan to acquire Albertsons for $20 billion in mid-October. Together, the companies would control about 13% of the U.S. grocery market. Lawmakers said the combined company will have to divest stores in places where they compete, which will likely raise prices. But Kroger's CEO said it has lowered prices after past mergers.