Kroger (KR, Financial) has announced a $7.5 billion stock buyback following the termination of its merger with Albertsons (ACI). This new buyback plan replaces the existing $1 billion authorization approved in September 2022, which included an accelerated stock repurchase agreement to buy back approximately $5 billion in shares. Kroger stated it is ready to deploy its capacity with a strengthened balance sheet and will resume stock repurchases after a pause of over two years.
The company also plans to redeem $4.7 billion of senior notes issued on August 27, 2024, which includes a special mandatory redemption clause related to the merger termination. A previous offer to exchange all outstanding Albertsons notes, up to $7.4 billion, has been canceled.
