Kroger Purchasing Rival Albertsons for $24.6 Billion
Rodney will continue to serve in the same role at the new combined company, the release said.
The news was first reported earlier in the week by Bloomberg, which said that a planned all-cash acquisition of Albertsons by Kroger could be announced as soon as Friday morning. Kroger, which is based in Ohio, has a market cap of around $32 billion compared to Idaho-based Albertsons’ market cap of around $15 billion, CNBCreported—meaning the grocery chains combined would have a market cap of $47 billion. Kroger has over 400,000 employees, while Albertsons has around 300,000 employees.
The boards of both companies unanimously supported the merger, which will need regulatory approval before it is complete.
“If a deal is announced, expect plenty of antitrust scrutiny as the two grocers have plenty of store overlap in several of the markets they compete in,” said CFRA research analyst Arun Sundaram in a research note on Thursday, according to the Cincinnati Business Courier. Also, regulators are likely to question whether consolidation could stifle competition and drive food prices even higher.”
Kroger earlier this year launched a series of digital initiatives, Retail Leader previously reported. It leveraged OneView’s headless Unified Commerce platform and capabilities to finalize its digital orders and power its e-commerce pickup and delivery experiences at 1,000 Kroger locations. Grocery retailers, like Kroger, expanded online and pick-up options during the COVID-19 pandemic. The grocer in 2018 partnered with Ocado to help it build fulfillment centers to fulfill online grocery orders. It currently has centers in just under a dozen states, according to Ocado.