Kroger to Acquire Albertsons

Reports in the financial press confirm that the Kroger Company (KR) will acquire competitor Albertson’s (ACI) in a $25 billion transaction. If approved by the DOJ, even with divestments, the resulting behemoth would combine to form an enterprise with 5,000 stores represented by 47 banners, with a presence in 35 states. The respective market capitalization values for the two parties on October 13th were $33.0 billion for KR and $13.7 for ACI. The combination of the chains would not only have outcomes for shareholders from synergy but the deal ultimately has implications for egg suppliers given the extent of consolidation among the pure-play supermarket chains.