Kroger Stock (NYSE:KR)
Kroger (NYSE:KR) stock saw a precipitous decline on Friday as investors processed the repercussions of the $25 billion buyout of Albertsons and the prospect of a legal fight with the Department of Justice to have the transaction approved.
Kroger said it is optimistic that the transaction would be allowed by the relevant authorities in the United States owing to the planned store sales.
On the conference call, the Chief Financial Officer of Kroger, Gary Millerchip, stated that Kroger is confident in its ability to achieve regulatory approval with divestitures because of the extensive work that it has done. “We believe we have a clear path to achieve regulatory approval with divestitures,” Millerchip said.
If these regulatory barriers can be overcome, the united supermarket giant may have close to 5,000 shops, making it slightly smaller than Walmart in terms of store count. Within the next several years, the transaction is expected to result in significant synergies and accretion advantages; nevertheless, in the short term, some expenses might go up.
At 3:45 p.m., the value of Kroger stock fell by 6.87%.
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Author Shariq Khan 
