Kroger’s $24.6 Billion Purchase of Albertsons to Create a Grocery Giant

Grocery giant


Kroger


said it was acquiring rival


Albertsons


in a roughly $24.6 billion tie-up that will help drive profitability and establish a larger footprint of nearly 5,000 stores.

Kroger


(ticker: KR) will acquire all of the outstanding shares of


Albertsons


for $34.10 a share, implying a 32.8% premium to Albertson’s closing price on Oct. 12, before talks of a potential merger were reported by the media. Albertsons will be paying a special cash dividend of up to $4 billion to its shareholders as part of the deal.