Dive Summary:
- Less than a month after its $2.5 billion deal to acquire Harris Teeter Supermarkets Inc., Kroger Co. is rumored as a potential buyer for Great Atlantic & Pacific Tea Co.
- Great Atlantic, the parent company of A&P and other supermarket chains, just exited bankruptcy last year, and its acquisition could give Kroger an entryway into the Northeast.
- A deal for Great Atlantic could be valued from $500 million to $1 billion, but Kroger's Harris Teeter deal is still pending regulator and shareholder approval.
From the article:
... The [Wall Street] Journal cited a person familiar with the matter in reporting that Kroger is one potential bidder. However, Kroger CFO Michael Schlotman had said on a July 9 conference call discussing the Harris Teeter deal that the size of that acquisition could make it tough for Kroger (NYSE: KR) to do any other sizable deals in the next six months. But he said he expects Kroger’s debt ratios to get back to where it wants them within 18 months to two years. ...