Harris Teeter Vote Gives Kroger the Green Light for 2.4 Billion Dollar Deal
In a Harris Teeter shareholders' vote this morning, the retailer gave Kroger the green light for its deal to buy the North Carolina-based grocery chain. Harris Teeter shareholders approved the $2.4 billion deal.
A smaller majority, 72 percent, approved “golden parachute” compensation packages for Harris Teeter’s top executives, according to the Charlotte Observer. The compensation packages will kick in once the deal is complete.
CEO Thomas Dickson would be eligible for a $262,500 bonus for getting the deal completed, the report states. In addition, Dickson would also be paid approximately $16 million in cash, stock and perks.
Federal regulators will still have to sign off on the acquisition, and the companies still face several shareholder suits looking to block the deal.
Kroger hopes to complete the acquisition in the fourth quarter of this year.
Dickson said Harris Teeter pursued a sale because of tightening competition in the grocery industry, with particular pressure from Walmart. He was quoted as saying, "The competitive landscape in the retail food industry has changed dramatically in the last 30 years."
Charlotte Observer
