Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, February 9, 2018

Article Excerpt

KROGER CO., $27.66, symbol KR on New York, is one of the largest U.S. grocery-store chains with more than 2,790 retail locations in 35 states.In November 2017, Kroger announced that to increase shareholder value, it is exploring the possible sale its 800 convenience stores spread across 18 states. These operate under several brands, including Tom Thumb, Turkey Hill, and Kwik Shop. With annual revenues of $4 billion, Kroger’s convenience store business would likely have been attractive to Montreal-based Alimentation Couche-Tard (Toronto symbol ATD.B, and a recommendation of our Stock Pickers Digest newsletter). However, earlier this week, Kroger announced that it was selling the convenience-store business for $2.2 billion to U.K.-based EG Group, an operator of convenience stores. EG Group started with one gas station in 2001, but has since grown to become one of Europe’s largest convenience-store chains with more than 2,600 sites across the U.K., France, and other parts of Europe. This latest acquisition will deepen its presence outside Europe. Kroger will…

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