Here Are Two Lesser-Known Winners In The Kroger-Albertsons Merger

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Kroger's announcement that it plans to buy rival grocer Albertsons for $24.6 billion will be a relief for investors Cerberus Capital Management and a windfall for Albertsons top executives.

roger's plan to buy rival grocer Albertsons for $24.6 billion would be a relief for Cerberus Capital Management.

The private equity firm, headed by former Trump advisor Stephen Feinberg, has been looking for an exit from its Albertsons investment almost since it first put its money in back in 2006. A back-of-the-envelope calculation shows that Cerberus, which owns about 29% of Albertsons stock, could collect in the neighborhood of $7.1 billion from the sale before factoring in the assumption of debt and reductions for a possible sale of existing stores. That’s assuming regulators approve the merger.

. That value is connected to the company’s stock price and outstanding equity awards as of January 26.. Sankaran, who rose to the top of the organizational chart in September 2021, stands to collect $50 million.

 

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Kroger agrees to buy rival grocery company Albertsons for $24.6 billionKroger is the second-largest grocer by market share in the United States, behind Walmart, and Albertsons is fourth, after Costco. Albertsons isn’t Safeway. Kroger pump
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