October 19, 2022 | Consumer Discretionary | North America | Active

Albertsons / Kroger: Deal Insights


Kroger plans to buy Albertsons for $24.6bn, including $4.7bn of net debt, through a merger that would combine the two largest grocery-store chains in the US, the companies said on 14-Oct-22. Kroger is offering $34.10 per Albertsons share, but this consideration is expected to be reduced two times through: (i) a $4bn, $6.85 per share special cash dividend, which will be paid to Albertsons shareholders on 7-Nov-22 (record date: 24-Oct-22, ex-date: 21-Oct-22); and, (ii) the distribution of a new Albertsons’ spin-off entity immediately prior to deal completion, based on the value of any store divestitures. Importantly, the special cash dividend will be subject to a 30% withholding tax which will affect most offshore funds to the tune of approximately ...



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