Grocery chains Kroger, Albertsons in talks for possible merger: report
Albertsons will release its second-quarter earnings on Oct. 18
Shares of Albertsons Companies jumped Thursday following a report that it could merge with rival Kroger.
An agreement could potentially be reached as soon as this week, Bloomberg reported, citing sources familiar with the matter, but said that no final decisions have been made and that merger talks could be delayed or fall through.
Representatives for Albertsons and Kroger did not immediately return FOX Business' request for comment.
In February, Albertsons' board of directors began a review of potential strategic alternatives aimed at enhancing the company's growth and maximizing shareholder value.
A worker pushes shopping carts outside an Albertsons supermarket in Las Vegas, Nevada, U.S., on Friday, Jan. 7, 2022. Albertsons Cos is scheduled to release earnings figures on January 11. (Bridget Bennett/Bloomberg via Getty Images) | Getty Images
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"The review will include an assessment of various balance sheet optimization and capital return strategies, potential strategic or financial transactions and development of other strategic initiatives to complement Albertsons’ existing businesses, as well as responding to inquiries," the company said at the time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ACI | ALBERTSONS COMPANIES | 19.45 | -0.40 | -2.02% |
| KR | THE KROGER CO. | 60.15 | -0.93 | -1.52% |
The report of merger talks comes ahead of Albertson's second-quarter earnings report, which will be released before the market opens on Oct. 18.
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As of June 18, Albertsons operated 2,273 retail, food and drug stores with 1,720 pharmacies, 402 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities across 34 states and the District of Columbia.
The company's 24 banners include Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's.
Meanwhile, Kroger operates nearly 2,800 stores in 35 states operating under 28 different names, including Fred Meyer, Ralphs, King Soopers and Harris Teeter.