Kroger Seeks to Create Grocery Giant in $20 Billion Albertsons Bid
Two of the nation’s largest grocers have agreed to merge in a deal they say would help them better compete with Walmart, Amazon, and other major companies that have stepped into the grocery business.
Kroger on Friday bid $20 billion for Albertsons Companies Inc., or $34.10 per share. Kroger will also assume $4.7 billion of Albertsons’ debt.
Kroger Chairman and CEO Rodney McMullen, who would retain those titles at the combined company, said a merger could save $1 billion annually in lower administrative costs, more efficient manufacturing and distribution, and shared investments in technology. McMullen said the company would plow those savings back into lower prices, higher wages, and improved stores….