Is Kroger Buying out Albertsons?

Kroger announced on Friday, October 14, 2022, that it intends to acquire Albertsons in a nearly $25 billion deal that could transform the US retail industry and affect how millions of customers shop for groceries.

The transaction, which is expected to close in 2024, would combine two of the country’s largest supermarket chains and create one of the country’s largest private employers.

The two companies have a combined workforce of 710,000 people, the majority of whom are unionised in an industry with low unionisation rates, nearly 5,000 stores, and more than $200 billion in sales.

Kroger CEO Rodney McMullen said in a statement Friday that the merger “accelerates our position as a more compelling alternative to larger and non-union competitors.”

If the deal is completed, it will be one of the largest mergers in US retail history, dwarfing Amazon’s $13.7 billion acquisition of Whole Foods in 2017.

By sales, the company would become the third-largest retail chain in the United States. According to Morgan Stanley, its combined market share in the $1.4 trillion grocery industry would be 13.5%, making it the second largest grocer behind Walmart’s 15.5% share