Albertsons to buy Rite Aid in cash-and-stock deal

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(Reuters) – U.S. grocery chain operator Albertsons Companies Inc said on Tuesday it would buy drugstore chain Rite Aid Corp (RAD.N) in a cash-and-stock deal to create a company with $83 billion in revenue. Rite Aid shares rose as much as 31 percent in premarket trading and were set to open at more than a five-month high of $2.80. FILE PHOTO: Customers leave an Albertsons grocery store with their purchases in Burbank, California July 17, 2012. REUTERS/Fred ProuserRite Aid shareholders will have the right to receive either one share of Albertsons common stock plus about $1.83 in cash or 1.079 shares of Albertsons stock in exchange for every 10 Rite Aid shares. Depending on the outcome of the tender offer, Rite Aid is expected to own a 28 percent to 29.6 percent stake in the combined company, while Albertsons’ shareholders will own a 70.4 percent to 72.0 percent stake, the companies said in a statement. Albertsons is backed by an investment group led by Cerberus Capital Management that also includes Kimco Realty Corp (KIM.N), Klaff Realty LP, Lubert-Adler Partners LP and Schottenstein Stores. The Wall Street Journal first reported the deal on Tuesday. on.wsj.com/2EIx9gY Reporting by Shalini Nagarajan and Vibhuti Sharma in Bengaluru; Editing by Shailesh Kuber and Anil D’SilvaOur Standards:The Thomson Reuters Trust Principles.
Source: Reuters