The Washington state Supreme Court has removed the last legal obstacle to a $4 billion dividend by Albertson to its shareholders ahead of a proposed merger with Kroger, reports The Seattle Times.
On Tuesday, the court refused to review a case against the dividend brought by state Attorney General Bob Ferguson or extend a temporary restraining order that had blocked the payment. Ferguson had argued that the payment could financially weaken Albertsons and lead to closures of locations of Albertsons and of Safeway, which Albertsons owns.
Albertsons wants to pay the dividend to shareholders ahead of its proposed $25 billion merger with Kroger.
“We respect the decision of the Court, but we are surprised and disappointed the Supreme Court decided not to hear this case,” Ferguson said in a statement.
In a statement Tuesday, Albertsons said it would “immediately begin the process of paying” the $4 billion dividend.
Grocery unions, meanwhile, expressed their objection to the ruling.
“We are disappointed to see a ruling that favors a small number of ultra-wealthy shareholders over the many thousands of essential workers and millions of Americans who will be left to suffer the consequences of the outright financial looting of Albertsons,” read a joint statement by several grocery unions, including United Food and Commercial Workers International, Local 3000, which represents workers at Seattle-area Albertsons and Kroger stores.
Tuesday’s ruling doesn’t affect the months-long approval process for the proposed merger, which can be held up by both federal and state regulators.
“This merger is far from a done deal,” said Ferguson. “My team and I will be conducting a thorough review.” Full Story
Related: Albertsons: Washington Court Expedites Restraining Order Review; Albertsons Digital Sales Up in Q3.