Jakarta, CNBC Indonesia – Kroger has announced plans to buy Albertsons for $ 25 billion, equivalent to Rs 386.8 trillion. This plan is expected to change the retail sector in the United States (USA) and also the way millions of customers shop for their groceries.
The deal, which is expected to be completed in 2024, will unite the country’s two largest supermarket chains and create one of its largest private companies. The two companies have a total of 710,000 workers and 85 million families.
The retail industry has consolidated in recent years, and the merger will give the company a larger scale to fend off competition from Amazon (AMZN), Walmart (WMT) and other retail giants.
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Traditional supermarkets have been done away with by these companies and others: discount chains like Dollar General (DG) and Aldi, warehouse clubs like Costco (COST), and online wholesalers.
Kroger’s CEO Rodney McMullen said the merger will accelerate the company’s position as a more attractive alternative to larger, non-union competitors.
If the deal is completed, it will be one of the largest mergers in US retail history.
“The company will become America’s third-largest retail chain by sales. Its combined $ 1.4 trillion grocery market share will be 13.5%, according to Morgan Stanley, making it the second-largest seller of genders. Foods behind 15.5%. Walmart’s share. This move also comes at a time when the company is battling higher costs and food inflation is reaching its highest level in decades, “Rodney said. CNNSunday (16/10/2022).
Kroger said the deal would benefit consumers and use half a billion dollars in cost savings from the merger to invest in lower prices. Albertsons is known to have higher prices than Kroger, and analysts say Kroger may be looking to lower the price of the chain.
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