Credit FAQ: Where Does The Kroger, Albertsons Merger Stand?

This report does not constitute a rating action. Kroger Co. (BBB/Negative/A-2) announced its $24.6 billion acquisition of Albertsons Cos. Inc. (BB/Watch Pos/--) on Oct. 14, 2022. The transaction would combine the two largest pure-play grocers in the U.S., with a combined $226 billion in revenues, before planned divestitures. More than seven months after the announcement, we believe we are still at least seven more months away from a potential deal closure. With the regulatory process well underway, the deal?s merits, hurdles, and detractors are rising to the surface. As a result of the proposed merger announcement, we revised our outlook on Kroger to negative and placed our rating on Albertsons on CreditWatch with positive implications on Oct. 14, 2022. Here,

...May 31, 2023 This report does not constitute a rating action. Kroger Co. (###/Negative/A-2) announced its $24.6 billion acquisition of Albertsons Cos. Inc. (##/Watch Pos/--) on Oct. 14, 2022. The transaction would combine the two largest pure-play grocers in the U.S., with a combined $226 billion in revenues, before planned divestitures. More than seven months after the announcement, we believe we are still at least seven more months away from a potential deal closure. With the regulatory process well underway, the deal's merits, hurdles, and detractors are rising to the surface. As a result of the proposed merger announcement, we revised our outlook on Kroger to negative and placed our rating on Albertsons on CreditWatch with positive implications on Oct. 14, 2022. Here, S&P Global Ratings presents frequently asked questions from investors about the proposed Kroger-Albertsons transaction....

Commentary