(AOF) – The American retail groups, Kroger and Albertson have concluded a merger agreement for an amount estimated at 24.6 billion dollars. Kroger will acquire all of the outstanding shares of Albertsons for an estimated aggregate consideration of $34.10 per share. As part of the transaction, Albertsons will pay a special cash dividend of up to $4 billion. The cash component of the consideration of $34.10 per share will be reduced by the per share amount of the special cash dividend, which would represent approximately $6.85 per share.
With a purchase price representing a premium of approximately 32.8%, Kroger and Albertsons plan to proceed with store divestments. Described in the merger agreement, Albertsons is prepared to create a subsidiary named SpinCo which would be divested to Albertsons shareholders immediately prior to the closing of the merger.
Kroger and Albertsons agreed to work together to determine which stores would be part of SpinCo. SpinCo, which would have between 100 and 375 stores, would become a nimble new competitor.
The new entity aims to provide fresh and affordable food to approximately 85 million households.
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Urban transformation to enhance real estate heritage
Several initiatives are intended to densify the land around hypermarkets and/or to play on the mix of uses (commerce, office, housing and even urban logistics). Nhood, the company launched by the Mulliez family, has the mission of transforming into mixed neighborhoods sites belonging to the property companies of Auchan, Ceetrus and Nodi, and the real estate assets of other companies in the group. It will accelerate in this business of urban regeneration. The Mulliez family had planned to invest 1.8 billion euros between 2022 and 2026 in its real estate projects. This objective should soon be revised upwards. Carrefour, for its part, joined forces with the promoter Altarea in early 2021 to transform commercial areas into mixed neighborhoods.