SEATTLE — The Washington state Supreme Court docket has brushed apart the ultimate remaining authorized hurdle in the way in which of a $4 billion dividend by Albertsons to its shareholders forward of a proposed merger with rival Kroger.
The state’s highest courtroom on Tuesday declined to evaluate a case towards the dividend introduced by state Legal professional Basic Bob Ferguson, The Seattle Instances reported.
Ferguson had argued that the fee may financially weaken Albertsons and result in shuttering areas of Albertsons and of Safeway, which Albertsons owns.
In a two-page ruling, the courtroom rejected reviewing the case or extending a brief restraining order blocking the dividend.
Albertsons
ACI,
-0.61%,
which is predicated in Boise, Idaho, needs to pay the dividend to shareholders forward of its proposed $25 billion merger with Kroger
KR,
+2.12%,
which owns QFC and Fred Meyer.
Ferguson mentioned in a press release Tuesday afternoon that his workplace respects the choice however is shocked and disillusioned the state Supreme Court docket determined to not hear the case.
Ferguson’s case was the ultimate impediment to the dividend after a federal choose in Washington, D.C., rejected comparable efforts by California, Illinois and the District of Columbia.
Grocery-store closures have been a priority within the Seattle space, the place Albertsons and Kroger have practically 200 areas. Kroger and Albertsons have each repeatedly dismissed closure considerations.
Grocery retailer unions additionally expressed dismay at Tuesday’s ruling.
“We’re disillusioned to see a ruling that favors a small variety of ultra-wealthy shareholders over the various 1000’s of important employees and tens of millions of People who might be left to endure the results of the outright monetary looting of Albertsons,” mentioned a joint assertion from by a number of grocery unions, together with United Meals and Industrial Staff Worldwide, Native 3000, which represents employees at Seattle-area Albertsons and Kroger shops.
Albertsons will instantly start the method of paying the dividend to stockholders, the corporate mentioned in a press release Thursday afternoon.
Tuesday’s ruling doesn’t have an effect on the months-long approval course of for the proposed Kroger-Albertsons merger, which may be held up by each federal and state regulators, Ferguson mentioned.
“This merger is way from a executed deal,” Ferguson mentioned. “My workforce and I might be conducting a radical evaluate.”
Nationwide, Kroger and Albertsons have nearly 800,000 staff in practically 5,000 shops throughout 48 states and the District of Columbia, Ferguson’s workplace mentioned.