(WBBM NEWSRADIO) --The proposed merger of two grocery giants is facing some opposition.
A group of Attorneys General is asking Albertsons to delay a $4 billion payout to its shareholders until they can complete a review of Kroger’s planned acquisition of the grocery chain.
Earlier this month, Kroger announced it was paying $20 billion to buy Albertsons, the parent company of Jewel-Osco. The merger agreement included a special dividend of up to $4 billion that Albertsons is scheduled to pay its shareholders on November 7.
“The proposed merger between Albertsons and Kroger could severely reduce competition, lead to increased food prices at a time families are struggling to keep up, and worsen food insecurity impacting low-income and minority communities in particular,” Illinois Attorney General Kwame Raoul said in a news release Thursday.
“It is imperative that neither company act to potentially affect a merger outcome while state attorneys general continue our review.”
In a letter sent to Albertsons, six attorneys general said the dividend would deprive the company of the cash it needs to operate while regulators review the merger.
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