Kroger (KR) Acquiring Albertson's (ACI)

Kroger announced they'll be acquiring Albertson's for $34.10 per share. The stock is currently at around 26 which is a significant discount. Why is that and does this special dividend have anything to do with it? Is this an arbitrage opportunity?

As part of the transaction, Albertsons Cos. will pay a special cash dividend of up to $4 billion to its shareholders. The cash component of the $34.10 per share consideration will be reduced by the per share amount of the special cash dividend, which is expected to be approximately $6.85 per share.

4 Comments
 

2 immediate things without being close to the situation:

TVoM, deal not expected to close until early 2024

Antitrust risk, significant risk the whole thing falls over and the shareholders never receive the offer price  

 

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