Albertsons: Merger With Kroger Still Offers Upside Potential

Nov. 15, 2022 12:34 PM ETAlbertsons Companies, Inc. (ACI)AMZN, KR, WMT36 Comments
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Somint Research
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Summary

  • This article analyzes the Albertsons-Kroger merger from the perspective of Albertsons shareholders, and whether Albertsons Companies, Inc. stock presents an opportunity today.
  • We conclude that Albertsons stock offers ~30% upside potential, assuming the merger goes through.
  • The Albertsons-Kroger merger should have reasonable chances to go through, as the retail market is fragmented.

Top Grocery Retailer Kroger To Acquire Rival Albertsons For $24.6 Billion

Mario Tama/Getty Images News

Albertsons Companies, Inc. (NYSE:ACI) and The Kroger Co. (KR) are expected to merge and create the largest grocery store operator, and one of the largest retail chains in the country. Kroger is the acquirer, buying Albertsons

ACI stock price

Google

Kroger and Albertsons combined

Kroger Presentation

Letter to FTC

Elizabeth Warren website

Merger price

Author

This article was written by

Somint Research profile picture
1.39K Followers
I write in Seeking Alpha to share my research with everyone. My hope is to spark discussion, discover blind spots, and for people to benefit from my analysis.I try to find high quality businesses with competitive advantages at fair prices. I take calculated risks based on likely economic scenarios, and I invest when I perceive a decent margin of safety.All articles published in Seeking Alpha reflect my own opinion. They're not investment recommendations. Read my articles for informational and entertainment purposes.

Disclosure: I/we have a beneficial long position in the shares of ACI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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