In a deal that might bring the two businesses closer to “Wall Mart” in terms of market value in the US, the American firm “Kruger” consented to buy the rival supermarket chain “Albertsons.”
According to a statement released by the two businesses today, “Kruger” has agreed to purchase “Albertsons” for $ 34. 10 per share in a deal valued at $24.6 billion, but the merger process is still pending regulatory approval.
According to Morgan Stanley, “Kruger,” the second-largest grocery store in terms of market share in the United States after “Wal-Mart,” purchased approximately 9. 9% of the food market there last year, totaling $ 1. 4 trillion, while Albertson’s share came in at around 5. 7%, ranking fourth after “Costtec.” After rising in response to news that the purchase agreement was likely to close, Albertsons’ shares finished yesterday at $28.63.
More than 700,000 people are employed by Kruger and Albertson collectively, spread across around 5,000 locations.
Grocery stores are severely suffering from inflation, as food prices jumped 11. 2 percent from last year, according to the latest US labor statistics office data..
At $25 billion,.. American Kruger purchases a rival business.
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