U.S. grocery giant Kroger (KR) is buying rival Albertsons (ACI) for $34.10 U.S. a share in a deal
valued at $24.6 billion U.S.
Kroger is currently the second-largest grocery store chain in the U.S. behind Walmart (WMT)
and Albertsons is fourth after Costco (COST).
Combined, Kroger and Albertsons would be a closer second to Walmart in terms of annual
sales.
Both companies’ boards have unanimously approved the deal, which will also needs regulatory
approvals to be finalized.
A merged Kroger and Albertsons will employ more than 700,000 people across 5,000 stores in
the U.S.
Kroger and Albertsons also each have numerous store brands, including Fred Meyer, Ralphs,
King Soopers, Safeway, Acme, and Tom Thumb.
Kroger held 9.9% of the U.S. grocery market in the 12 months ended June 30 this year,
according to market research firm Numerator. Albertsons’ market share was 5.7%.
Kroger’s stock is up 3% this year at $46.57 U.S. per share. Albertsons’ stock is down 2% on the
year and trading at $28.63 U.S. a share.
