Former Albertsons executive defends pre merger dividend during trial over failed deal

Former Albertsons chief executive Vivek Sankaran testified in Wilmington, Delaware, on October 20, 2026, during a trial over the grocer's failed merger with Kroger, Grocery Dive reported. Sankaran stated that a controversial four billion dollar dividend payment made to investors shortly after agreeing to the merger never put the financial health of the business at risk. [1]

According to Grocery Dive, Sankaran told the court that the supermarket operator maintained plenty of cash when the payout was issued, even while the proposed combination with Kroger remained uncertain. Related reports from Quartz and PYMNTS.com noted that former Kroger chief executive Rodney McMullen also testified during the proceedings, while Sankaran attributed the collapse of the 24.6 billion dollar transaction to Kroger's antitrust strategy. [1][2][3]

Albertsons is based in Boise, Idaho. The business expanded through organic growth and acquisitions, including a 2015 merger with Safeway Incorporated, to become the second largest supermarket chain in the United States. As of early 2025, the company operated 2,270 retail locations, including 1,728 pharmacies, under banners such as Safeway, Vons, and Jewel-Osco. In fiscal year 2024, Albertsons recorded net sales exceeding 80 billion dollars. [4][5]