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.
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“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.
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“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.
The merger between the two companies is still pending approval from various government regulators.
