By The Big Magazine Staff
Kroger announced that it plans today to buy Albertsons in a deal estmated at $25 billion that would bring together chains including Ralphs, Safeway, and Vons, and others. As a combined company they will have nearly 5,000 stores and more than $200 billion in sales.
The merge of the supermarket giantas would rival competitor brands such as Amazon, Walmart, as well as pharmacies and gas stations. Kroger will pay $34.10 a share to acquire Albertsons.
Kroger, based in Cincinnati and founded in 1883, operates 2,750 grocery stores across the U.S. under brand names which include Ralphs, Dillons and Harris Teeter. Albertsons, based in Boise, Idaho, and founded in 1939, runs 2,200 supermarkets under names like Albertsons, Safeway and Vons.
Will the merge mean lower prices for consumers? The market is skeptical about two of the largest supermarket brands combining forces. Consumer protections groups warn this latest M&A is bad for the community and workers who will undoubtedly face layoffs.
The deal is expected to in 2024.
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