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Kroger agrees to buy rival grocery company Albertsons for $24.6 billion [1]
['Melissa Repko', 'In Melissa-Repko']
Date: 2022-10-14
Rival grocers Kroger and Albertsons on Friday announced plans to team up.
The companies said Kroger agreed to buy Albertsons for $34.10 a share in a deal valued at $24.6 billion. Albertsons shares had closed Thursday at $28.63 after surging on reports that a deal was imminent.
Kroger is the second-largest grocer by market share in the United States, behind Walmart , and Albertsons is fourth, after Costco . Together, Kroger and Albertsons would be a closer second to Walmart.
Both companies' boards unanimously approved the agreement, which will also need regulatory approval.
Read more: How Kroger and Albertsons plan to win over Wall Street and Washington
The tie-up comes during a challenging time in the grocery industry. Supermarkets have raced to keep up as shoppers embrace new ways of restocking the fridge. Companies have had to invest in automation, employee training and more as consumers bounce between browsing store aisles, ordering home deliveries and using curbside pickup.
Grocers have also been hit hard by inflation. Food prices have jumped 11.2% from a year ago, according to the most recent Bureau of Labor Statistics data. Companies have had to weigh when to pass on higher costs to customers and when to absorb them to stay competitive.
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[1] Url:
https://www.cnbc.com/2022/10/14/kroger-agrees-to-buy-albertsons-for-24point6-billion.html
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