10.14.22
In a move that is sure to catch the attention of anti-trust regulators, Kroger and Albertsons announced they will merge in a $24.6 billion deal. Kroger is the No. 1 supermarket chain in the US. Albertsons is No. 2. The deal is viewed as an opportunity to gain critical mass against rivals such as Walmart and Amazon.
If the deal is approved, the combined companies' sales would reach $209 billion, just behind Walmart's grocery sales, which totaled $218 billion in 2021.
“Through a family of well-known and trusted supermarket banners, this combination will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households,” the companies said in a joint statement.
Under terms of the deal, Kroger will pay $34.10 a share for Albertsons. That price tag values the company at $24.6 billion, including debt. It represents a 20% premium over Albertson's closing share price on Thursday. Albertsons, Boise, Idaho, owns Ralphs, Safeway and Vons. It operates 2,200 supermarkets. Kroger, based in Cincinnati, operates 2,750 grocery stores. Its brands include Ralphs, Dillons and Harris Teeter.
But the acquisition will face plenty of opposition. The American Economic Liberties Project, a nonprofit that promotes antitrust legislation, criticized it as a “bad deal for consumers, workers and communities.”
“There is no reason to allow two of the biggest supermarket chains in the country to merge — especially with food prices already soaring,” Sarah Miller, the group’s executive, said in a statement on Thursday.
If the deal is approved, the combined companies' sales would reach $209 billion, just behind Walmart's grocery sales, which totaled $218 billion in 2021.
“Through a family of well-known and trusted supermarket banners, this combination will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households,” the companies said in a joint statement.
Under terms of the deal, Kroger will pay $34.10 a share for Albertsons. That price tag values the company at $24.6 billion, including debt. It represents a 20% premium over Albertson's closing share price on Thursday. Albertsons, Boise, Idaho, owns Ralphs, Safeway and Vons. It operates 2,200 supermarkets. Kroger, based in Cincinnati, operates 2,750 grocery stores. Its brands include Ralphs, Dillons and Harris Teeter.
But the acquisition will face plenty of opposition. The American Economic Liberties Project, a nonprofit that promotes antitrust legislation, criticized it as a “bad deal for consumers, workers and communities.”
“There is no reason to allow two of the biggest supermarket chains in the country to merge — especially with food prices already soaring,” Sarah Miller, the group’s executive, said in a statement on Thursday.