Two major grocery chains, Kroger and Albertsons, announced on Friday a merger of the two companies.
In a statement, Kroger said the mega-chain would hold nearly 5,000 locations in 48 states.
“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders," said Rodney McMullen, Kroger Chairman and Chief Executive Officer, who will continue serving as Chairman and CEO of the combined company. "Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores.
“This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors.”
The merger will still need regulatory approval. If approved, the merger would be expected to be finalized in early 2024.
The two companies say that combining operations would increase efficiency, especially for their private-label brands.