Dec 21 (Reuters) - Albertsons Companies Inc said on Wednesday the Washington Supreme Court will review on Feb. 9 the state attorney general's appeal to permanently stop the company's blocked $4 billion special dividend ahead of its acquisition by Kroger Co.
The court on Friday extended a temporary restraining order on Albertsons' previously announced $6.85 per common share special dividend by a lower court, and said the block would remain in place until a further order of the court.
The $25 billion mega merger deal between Kroger and Albertsons, the No. 1 and 2 standalone grocers in the United States, has drawn fire from lawmakers and consumer groups amid concerns the tie-up could boost already high food prices and stifle competition.
Kroger this month received a request for additional information from the U.S. Federal Trade Commission as part of the regulatory review process for the planned merger.
The Washington Attorney General has said the dividend payout "risks severely undercutting the grocery giant's ability to compete" during the lengthy regulatory scrutiny, but Albertsons has maintained that it's in a strong position financially and the dividend would not hurt it.
Albertsons said the U.S. Circuit Court for the District of Columbia on Tuesday denied the motion filed by the California, Illinois and District of Columbia attorneys general for an injunction pending appeal and an administrative stay on the special dividend payment. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
