Presidents from UFCW Locals from all across the country met with grocery executives from Albertsons and Kroger on Thursday, October 27 in Chicago to discuss the $4 billion special dividend to Albertsons shareholders and the proposed merger with Kroger.
The corporate executives gave a rosy forecast of the merger and dividend payout, but we are extremely skeptical, especially concerning Albertsons’ $4 billion shareholder giveaway and what that could potentially do to the company.
Rob Bonta, the Attorney General of California, along with his colleagues in the District of Columbia, Arizona, Idaho, Illinois, and Washington wrote a letter demanding that Albertsons delay the dividend payout. Bonta’s statement reads:
“In the letter, the attorneys general express their strong concern with Albertsons and Kroger’s joint announcement that Albertsons will pay stockholders a cash dividend of up to $4 billion on November 7, 2022…. The planned dividend payment would substantially impact Albertsons cash flow, making it difficult to continue to compete with Kroger ahead of the merger.”
We are currently working on many levels to get as much information as possible to make decisions that are in the best interests of our members.
Stay tuned for future updates…