A $25 billion merger deal was struck between two of the biggest supermarket chains in the country, a move anticipated to force the closure of 400 locations to keep regulatory scrutiny at bay.
Kroger bid $34.10 per share, or $20 billion, for Albertsons and will also assume $4.7 billion of the supermarket’s debt, according to a press release on Friday (Oct. 14).
“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders,” said Kroger CEO and Chairman Rodney McMullen, who will continue serving in the same capacity of the combined company.
The grocery chain Kroger announced plans Friday to buy competitor Albertsons for $24.6 billion, potentially creating a grocery empire spanning the United States.
Read More: Albertsons Reportedly in Merger Talks with Kroger
Once combined, the companies are poised to compete against retail giant Walmart and a growing Amazon presence in the food and grocery market. Kroger, which lists a dozen Arkansas locations, mostly in or near Little Rock, and Albertsons, which lists one store in Texarkana, are two of the largest US grocers.
After a finalized deal, Kroger is expected to control nearly 12% of the food and grocery market, according to the data analysis company GlobalData, making it the second-largest player in the food and grocery market, behind only Walmart.
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