Kroger stock price is down in trading at $44.38 as of 12:04 PM EDT
As Kroger ( NYSE:KR ) confirmed a multibillion-dollar offer for the business, shares of Albertsons Companies ( NYSE:ACI ) increased in premarket trading. According to the terms of the agreement, which were made public on Friday, Kroger will buy all of the Albertsons Companies’ outstanding shares for an anticipated total consideration of $34.10 per share, equating to a total enterprise value of roughly $24.6 billion. The $4.7 billion in net debt held by Albertsons is included in the deal. In accordance with the conditions, Albertsons will also distribute a special cash dividend to its stockholders on November 7 that could amount to $4 billion.
According to Rodney McMullen, CEO of Kroger ( NYSE:KR ), “We are merging two purpose-driven enterprises to create superior value to customers, associates, communities, and shareholders.” “Albertsons Cos. brings a complementing footprint and operates in numerous regions of the country where there are few or no Kroger outlets. By extending our reach into new regions to serve more of America with fresh, inexpensive food, and by strengthening our position as a more appealing alternative to larger, non-union competitors, this merger supports our mission to create a more fair and sustainable food system. The combined businesses are expected to employ 710,000 colleagues across 4,996 stores, 66 distribution centers, 52 manufacturing facilities, 3,972 pharmacies, and 2,015 fuel stations.
Kroger Stock Price Movement vs Albertson’s
Following the offer, the price of Albertsons ( NYSE:ACI ) stock increased by 9.8%...
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