Cerberus Capital Management and a consortium of real estate investors are in line for a big payday if Kroger’s proposed $24.6 billion acquisition of rival US grocery retailer Albertsons is cleared by regulators, according to a report by the Financial Times.
Kroger has agreed to acquire Albertsons in a deal that would create one of the largest US supermarket chains but only if it passes significant antitrust hurdles. It has agreed to pay $34.10 per Albertsons share, an almost 33 per cent premium to the group’s share price as of 12 October. The price includes $4.7 billionn in debt.
The deal will also see Albertsons will pay a special cash dividend of about $6.85 per share, worth about $4 billion, to its shareholders this year, with that figure being deducted from the overall cash offer.
Read more: Private Equity Wire
