Bob Ferguson the activist Attorney General of the State of Washington, has filed suit in the King County Superior Court to prevent Albertson’s Holdings Inc. paying $4 billion as a dividend to shareholders before the sale to the Kroger Company.

Attorney General Ferguson stated, “Paying out $4 billion before regulators can do their job and review the proposed merger will weaken Albertsons’ ability to continue business operations and to compete.”

The proposed acquisition of Albertsons by the Kroger Company will undergo DOJ scrutiny based on the potential to stifle competition.  Albertsons, headquartered in Idaho, has a strong presence in Washington State through the Safeway banner.  Kroger operates Fred Meyer and QFC stores.