Ask your Attorney General to stop the Albertsons $4 billion giveaway to Wall Street private equity now
Kroger and Albertsons make up the fourth and fifth largest grocery chains in the country and their merger could potentially lead to store closures,worsening food deserts, increasing food costs for consumers and, and destroying thousands of unionized grocery jobs.
Just days after the announcement, Albertsons’ Board of Directors proposed paying shareholders $3.7 billion in a one-time “special dividend.” It’s so huge that Albertsons will have to borrow the rest in this cash grab for shareholders.
Cerberus Capital Management, the most influential shareholder, is behind this outrageous cash grab. It leads a consortium of owners who together are extracting this money.
It’s an incredible conflict of interest that will result in Cerberus receiving more than $1 billion directly from the $3.7 billion total payout.
Meanwhile, Albertsons also reported in 2021 that its pension plans are underfunded by a shocking $4.7 billion. And the company will still have to contend with the $6.55 billion in debt that needs to be repaid.
To put those numbers in perspective, Albertsons could use this dividend money to pay back more than 56% of its current debt instead of a huge giveaway to Wall Street.
That’s why the Attorney General of California, Washington, Arizona, Idaho, Illinois, and the District of Columbia sent a joint letter to CEOs of Albertsons and Kroger demanding they cancel the shareholder payment immediately.
And it’s why Washington State Attorney General Bob Ferguson took the pressure up a notch, by filing a lawsuit earlier this week to block Albertsons from paying out the dividend before antitrust regulators can review the deal. Washington DC Attorney General Karl Racine, piled on the next day.
We can stop this $4 billion giveaway, but only if we act immediately. Sign the petition demanding your Attorney General fight this outrageous giveaway now.
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 AG Ferguson files lawsuit to block Albertsons from paying $4 billion to shareholders before merger can be reviewed
In a mega-deal that could have a huge impact on grocery shopping in America, Kroger and Albertsons have announced plans to merge. If approved by regulators, the nearly $25 billion deal would be one of the biggest in US retail history.
Just days after that announcement, Albertsons’ Board of Directors announced a plan to pay shareholders $3.7 billion in a one-time “special dividend.” This amount is equal to 56% of its total debt load and would put workers and their pensions at risk, while nearly a third of the dividend payout would go to a Wall Street private equity firm, Cerberus Capital Management.
That’s why Washington State Attorney General Bob Ferguson and Washington DC Attorney General Karl Racine filed lawsuits and temporary restraining orders to block Albertsons and Kroger from paying out the dividend before antitrust regulators can review the deal. Attorneys General of Arizona, California, Idaho, Washington, Illinois, and the District of Columbia also sent a letter to the Chief Executive Officers of Albertsons and Kroger requesting the cancellation of the special dividend payment plan.
I’m calling on you to join your fellow attorneys general in working to stop this nearly $4 billion giveaway that will mainly benefit some already very rich people at the expense of workers and consumers.