Kroger buys Albertsons and creates a US supermarket giant

The American giant of the supermarket sector Hooks reached an agreement to buy your competitor Albertsons for 24.6 billion dollars, both companies announced this Friday in a joint statement.

The operation, subject to the approval of the competition regulatory authorities, should allow the newly formed group to compete with Walmartnumber one in the sector in the United States.

Both companies expect the transaction to be completed in early 2024, but it could be blocked by management. Joe Bidenparticularly strict in matters of anti-competitive practices.

Under the deal, Kroger buys shares of Albertsons at a price of $34.10 per share, nearly 33% above Wednesday’s closing price.

Albertsons shares rose more than 11% on Thursday after rumors of the acquisition.

Kroger will also assume approximately $4.7 billion owed by Albertsons, which has committed to paying shareholders a cash dividend of up to $4 billion.

We believe this transaction will lead to faster, more profitable growth and better returns for our shareholders,” Kroger Chief Executive Rodney McMullen said in a statement.

With a network of nearly 2,800 stores in 35 states, Kroger posted sales of nearly $138 billion last year.

Albertsons, which has 2,273 stores in 34 states and the capital Washington, had sales of just under $70 billion in 2021.

These amounts are still significantly lower than the $559.2 billion turnover achieved by Walmart last year.

“With the acquisition of Albertsons, Kroger cements its position as the second largest food retailer in the United States behind Walmart and will control approximately 11.8% of the market,” says Neil Saunders of GlobalData.

“However, it will still be far from the first position, which Walmart holds, with a 17.1% share,” he added.