Kroger Co. agreed to buy Albertsons Cos. in a deal with an enterprise value of $24.6 billion that would create a U.S. grocery giant with almost 5,000 stores and annual revenue of about $200 billion.
Investors will receive $34.10 for each share in Albertsons, which includes a special dividend, the companies said in a statement Friday. That reflects a premium of about 33% to the closing price on Oct. 12, the day before Bloomberg News first reported on the deal talks. The companies plan to sell as many as 375 stores through a spinoff.
The proposed tie-up gives rise to a grocery giant with increased buying power and an opportunity to save on costs as brick-and-mortar retailers invest heavily to enhance their online offerings. While the deal would create a beefed-up competitor to Walmart Inc. and other rivals, it’s sure to face tough antitrust scrutiny as U.S. regulators under President Joe Biden cast a more skeptical eye on big mergers.
