Boise Reacts to Proposed Mega-Grocery Merger
It's not often that a company that was born in Idaho is linked to a mega-merger worth over twenty billion dollars. But the Albertsons grocery store chain is not your average acquisition. The Boise-based chain that began when Joe Albertson opened his first store has grown to the second-largest grocery chain in the country.
As we reported here, Kroger, the largest grocery chain in the country, wants to purchase or merge with Albertsons creating a company that some experts predict could come close to rivaling retail grocery giant Walmart.
The reaction to the proposed merger has not been kind to both companies, as their stock prices fell on Friday after the announced merger. How big are these to grocery goliaths?
The New York Times broke down the tale of the tape for us. Kroger has been in operation since 1883 and has 2,750 stores. Albertsons began in 1932 and has 2,200 stores. Both chains operate stores under different brand names. One, Kroger, is headquartered in Cincinnati, Ohio, and Albertsons is based here.
The NYT quotes a study from 2008 that found that mergers mean price hikes for consumers. Already influential members of the public are voicing their disapproval via social media.
One of the nation's most powerful politicians and possible a presidential contender calls the thought of the merger another example of corporate greed.