5 Merger Arbitrage Opportunities in 2023

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In this article we present the list of 5 merger arbitrage opportunities. For a more comprehensive list please visit 15 Merger Arbitrage Opportunities in 2023.

5. Kroger Co (NYSE:KR)’s $25B Acquisition of Albertsons Companies, Inc. (NYSE:ACI)

Consideration: $34.10 a share
Spread: 53%
Main Risk: Antitrust Concerns

Kroger Co (NYSE:KR) has reached a $25 billion merger agreement with Albertsons Companies, Inc. (NYSE:ACI) to create the largest grocery store chain worth over $200 billion. The biggest winners in the deal are private equity firms and investors that have made big profits through long-term investment in Albertson. Additionally, there is a merger arbitrage opportunity.

With Albertsons Companies, Inc. (NYSE:ACI) trading for about $22.18 a share and Kroger Co (NYSE:KR) willing to pay $34.10 a share, the arbitrage spread is approximately $11.92. Consequently, it presents an opportunity to gain about 53% on the deal closing.

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