© Reuters. A display screen shows the corporate emblem for Albertsons Cos Inc. on the ground of the New York Inventory Trade (NYSE) in New York Metropolis, U.S., October 14, 2022. REUTERS/Brendan McDermid/File Photograph
By Mike Scarcella
(Reuters) -Washington’s state supreme courtroom on Friday blocked Albertsons Firms Inc from paying a particular dividend forward of its acquisition by Kroger (NYSE:) Co, a courtroom order confirmed.
The courtroom prolonged a block put in place by a decrease courtroom, and mentioned the block would stay in place till an extra order of the courtroom.
“The State of Washington Supreme Courtroom has continued the momentary restraining order in opposition to the corporate’s beforehand introduced particular dividend whereas the Washington Supreme Courtroom considers if it can hear the state’s attraction,” Albertsons mentioned in an announcement.
The U.S grocery chain has filed a movement to expedite the Washington Supreme Courtroom’s assessment, in line with the assertion.
Earlier in December, Albertsons mentioned Washington State Courtroom had denied a request of preliminary injunction by the state’s Legal professional Normal to stop the corporate from paying $4 billion to shareholders in a particular dividend.
Kroger snapped up Albertsons in a $25 billion deal in October, in a mega merger between the No. 1 and a couple of standalone grocers, saying the deal would assist it higher compete in opposition to U.S. grocery business chief Walmart (NYSE:) Inc on costs.
The deliberate acquisition has come underneath sharp criticism on antitrust grounds.