政大個案中心
學門類別
毅偉
最新個案

Kroger and Albertsons: A Good Match?

內容大綱
In October 2022, The Kroger Company and Albertsons Companies Inc. announced their intention to merge their grocery businesses in the United States. By the fall of 2023, the proposed merger was facing lawsuits and protests from various stakeholders including politicians, employee labour unions, and consumers. The merger agreement required the deal to be completed by mid-January 2024, although this date could be extended if both sides agreed. This seemed an appropriate time for an analyst to take a closer look at the merger’s potential benefits, including evaluating potential synergies to be gained from the proposed merger. However, the analysis would have to consider the industry’s regulations. An analysis of the proposed merger would have to carefully consider both the qualitative and quantitative benefits that could arise from The Kroger Company and Albertsons Companies Inc. joining forces in the highly competitive US grocery market.
學習目標
This case is appropriate for undergraduate and graduate students in various finance courses, in addition to a core finance course. It explores mergers and acquisition in detail, which is not typically covered in required core classes. Before discussing this case, students should understand valuation and be familiar with the following concepts: discounted cash flow valuation, sensitivity analysis, and mergers and acquisitions. After completion of this case, students will be able to<br><br><ul><li>list synergies from horizontal mergers and determine which might apply to a merger, quantifying them when possible;</li><li>evaluate a company’s financial strengths and weaknesses using financial ratios;</li><li>evaluate the pros and cons of antitrust regulation in the grocery industry;</li><li>prepare free cash flows and discount them by the weighted average cost of capital; and</li><li>evaluate the impact of merger news on the stock prices of the merging companies.</li></ul>
涵蓋主題
新增
新增