On Thursday,
The dividend was scheduled to be paid Monday.
The proposed merger would combine two of the nation’s largest grocery chains. Some critics worry that could mean reduced competition, higher food prices and the closure of under-performing locations, including some in
“Putting the brakes on this
Next Thursday,
“There is obviously further information and evidence that needs to be presented,” Judson noted.
In a lawsuit filed Tuesday, Ferguson argues the dividend is illegal because it potentially undercuts the ability of Albertsons to keep all its locations open in the several years needed to complete the merger.
Those arguments were echoed by attorneys general in
One major concern of the dividend is the potential impact of such a large payment on Albertsons. To win regulatory approval for the merger, Albertsons and
However, some antitrust and business experts question whether locations chosen for divesture might already be struggling financially. They worry that a cash-strapped Albertsons might fail to keep all those locations open while it finds a willing buyer and that some divested stores could close, as happened after the 2015 merger between Albertsons and Safeway.
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