The fight over whether two of the nation’s biggest grocery chains should be allowed to merge and create a retail giant has stretched to Oregon, where the state attorney general has issued a civil demand for information from Albertsons about its plan to become one with Kroger.
Oregon demands information about grocer mega-merger
The proposed merger, announced last month, has stirred strong opposition from unions and consumer groups, who say a grocery behemoth consisting of the many brands held by the companies will diminish competition and raise prices.
Albertsons operates Safeway, Star Market, Shaw’s and Vons, among others. Kroger operates a family of stores that includes Ralphs, King Soopers and Fred Meyer.
Opponents also have argued that the $4 billion payment or “special dividend” to Albertsons shareholders would enrich the private equity firms that control the company while undermining the company financially.
The attorney general’s office “intends to fully investigate all the conduct of individuals and entities involved in negotiation and determining the “special dividend,” according to the letter to an attorney representing Albertsons, Ted Hassi.
Spokespeople for Albertsons did not respond Thursday evening to requests for comment on the letter. It has previously said there is no legal basis to stop the dividend payment.
While Oregon officials declined to specify what information they are requesting, spokesperson Kristina Edmunson said Thursday that it is “an all-encompassing request for detailed information.”
The move in Oregon follows efforts by other states to block the $4 billion “special dividend” that was announced in connection with the merger.
Attorneys general in California, Illinois and D.C. had sought a federal court ruling to block the special payment but on Tuesday, U.S. district judge Carl J. Nichols denied the request.
The attorney general in Washington state has won a temporary pause on the payment, meanwhile, and that case is ongoing.
Source: WP
