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Kroger seeks to create grocery giant with $20B Albertsons

Exterior of the Kroger grocery store in Novi, Mich., is seen Saturday, Jan. 23, 2021. Two of the nation's largest grocers are planning to merge. Kroger said Friday, Oct. 14, 2022, it has agreed to acquire Albertsons in a $20 billion deal. (Ed Pevos/Ann Arbor News via AP, File)

Two of the nation's largest grocers have agreed to merge in a deal that 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, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Alberstons, based in Boise, Idaho, operates 2,220 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 710,000 people.

The deal will likely get heavy scrutiny from U.S. antitrust regulators, especially at a time of high food price inflation. If approved, the deal is expected to close in early 2024.

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Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Kroger (KR)
4.1089 of 5 stars
$70.961.6%1.97%19.33Moderate Buy$70.00
Albertsons Companies (ACI)
3.1455 of 5 stars
$22.613.1%2.65%13.76Moderate Buy$24.21
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