Kroger, Albertsons grocery stores announce $24.6 billion merger

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Kroger and Albertson grocery stores announced Friday a plan to merge together. According to a press release, the plan contains establishing, 'a national footprint' and uniting around Kroger's Purpose to Feed the Human Spirit.

CINCINNATI — Kroger and Albertson grocery stores announced Friday a plan to merge together.

The board of directors from each company approved the merger agreement, which includes Kroger acquiring all outstanding shares of Albertsons Companies, Inc. common and preferred stock, on an as converted basis, for an estimated total of $34.10 per share. This implies a total enterprise value of approximately $24.6 billion, including the assumption of $4.7 billion of Albertsons' net debt.

Between the two companies, more than 710,000 associates are employed and 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers are in operation. An incremental $1.3 billion will also be invested into Albertsons stores to enhance the customer experience. According to the press release, Kroger will continue to build on associate wages, training and benefits. The company has invested $1.2 billion in associate compensation and benefits since 2018 and with the merger, expects to invest $1 billion to raise wages and benefits after the close.

McMullen said the merger secures union jobs and as a combined company, will create a culture embracing, "diversity, equity and inclusion and fosters a best-in-class associate experience by enabling, supporting and empowering our associates to unlock their full potential"

 

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Kroger announces deal to merge with Albertsons to form a mega grocery chain | CNN BusinessKroger announced it's merging with Albertsons in a $24.6 billion deal, creating one of the largest grocery store chains in the United States with nearly 5,000 stores when combined. Inflation: 14 Consumers: 0 Well, this won't help food prices or the bare shelves (and poor quality) at Kroger. I don't suppose the FTC will step in to thwart this attempted monopoly? Kroger sucks. I feel so sorry for their workers.
Source: cnnbrk - 🏆 393. / 55 Read more »