Albertson’s Company is still under a restraining order by the state of Washington to withhold payment of a special dividend equivalent to $6.85 per common share that was scheduled for release on November 7th 2022. The state of Washington holds that the dividend would reduce liquidity and impair the capacity of the company to compete before and after acquisition by the Kroger Company.   The U.S. District Court for the District of Columbia denied requests by California and Illinois to impose a similar restraining order against payment of the dividend. 

Albertson’s maintains that the Washington State Lawsuit lacks merit and is devoid of legal basis.  The company avers that after payment of the dividend, liquidity will attain $3.0 billion, comprising $500 million in cash and $2.5 billion under existing lending facilities.

In response to U.S. Senate inquiries regarding the proposed acquisition, Kroger has assured legislators that $1.3 billion will be available for investment and enhancements, including introduction of technical innovations.  Up to $1 billion will be available to enhance salaries and wages with appropriate benefits for Albertson’s employees.  Gary Millerchip, CFO of Kroger estimates that over a short period, $0.5 billion will be extended to customers as cost savings arising from synergies.  Kroger has outlined a path to completion of the transaction, including divestiture of a number of stores to viable competitors.

The combination of Albertsons and Kroger will comprise 4,996 stores with 3,972 pharmacies, 66 distribution centers, 52 manufacturing plants and 2,015 fuel centers.  Projected annual sales will amount to $2,200 million, generating $3.3 billion in earnings during the fiscal year following the acquisition.