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What's Going On With Kroger Stock Premarket Friday?
2024-08-16 18:21
The Kroger Co. (NYSE:KR) disclosed on Thursday that it has begun private exchange offers for eligible holders to swap any outstanding notes issued by Albertsons Companies, Inc. (NYSE:ACI) and its subsidiaries for up to $7.44 billion in new Kroger notes and cash.
Apart from this, the company plans to cut grocery prices by $1 billion following its $25 billion merger, reported Reuters.
The supermarket merger, announced in October 2022, aimed to create a grocery giant with over 4,000 stores. However, it has faced antitrust lawsuits, with Washington State’s attorney general leading the challenge over concerns about rising grocery prices, the report added.
The proposed merger was paused last month, awaiting a Colorado District Court ruling on a lawsuit aimed at blocking the deal.
Read: Merger-Bound Albertsons Companies’ Q1 Sales Beats Estimate With Pharmacy And Digital Sales Boost
The trial is scheduled to start on September 30, according to State Attorney General Phil Weiser.
In July, Kroger revealed the comprehensive list of stores, distribution centers, and plants it plans to divest to gain regulatory approval for its proposed merger with Albertsons.
Kroger had previously pledged to cut grocery prices by $500 million at Albertsons locations.
The divestiture package, initially consisting of 413 stores, has been increased following the Federal Trade Commission’s (FTC) intervention.
In June, Kroger reported first-quarter adjusted EPS of $1.43, surpassing analyst expectations of $1.34 per share.
Investors can gain exposure to the stock via Invesco Food & Beverage ETF (NYSE:PBJ) and Tidal ETF Trust Newday Ocean Health ETF (NYSE:AHOY).
Price Action: KR shares are up 0.98% at $53.41 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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