LONG ACI & KR; REVIEWING MERGER IMPLICATIONS AHEAD OF TRIAL
Our Consumer Staples team led by Daniel Biolsi is hosting a presentation on Longs Albertsons Companies (ACI) and Kroger (KR) on Monday, August 19th at 2:00pm ET to discuss his long thesis ahead of the FTC trial and lay out his plan should this merger go through.
CLICK HERE to get access.
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With minimal food inflation, lackluster traffic trends, a value-seeking consumer, manufacturer-funded promotions picking up, and continued share shift towards the mass, discount, and club channels, the industry backdrop is set for a return to historical competitive intensity. Kroger sought to acquire its largest supermarket competitor to offset the competitive pressures and the lapping of favorable industry base effects. The merger would provide enough initiatives, synergies, and savings to offset industry headwinds through the decade's end. The FTC and several states (at the behest of labor unions) have filed suit to stop the merger on anti-competitive grounds. We think the merger will be approved with the proposed divestments. The risk/reward is favorably weighted towards going long Kroger and Albertsons. |
We invite you to join us for this presentation.