Ahold Delhaize to buy US competitor Albertsons?

Ahold Delhaize is reportedly in takeover negotiations with Albertsons, one of the largest supermarket groups in the United States. As of yet, the Benelux retail giant refuses to confirm or deny…

Caught by aircraft spotters

Ahold Delhaize is rumoured to be in talks with Albertsons, the tenth largest retailer in the US. The reason for the rumours? Two Albertsons planes that were spotted last week at Bedford Airport, next to Ahold Delhaize’s US base in Massachusetts. This was first reported by Seeking Alpha, based on plane spotters and investment research advisers at Gordon Haskett.

Despite the unexpected sources, it might well be true. There is no doubt that Albertsons is in a tough spot: the supermarket chain has had to promise investors that it would strategically review its portfolio. This portfolio is mainly to be found in the western part of the US, with 2,300 shops (including the Safeway and Jewel-Osco chains).

After the pandemic, growth at Albertsons came to a halt and the group’s shops are said to be in dire need of updating. Meanwhile, board member Jay Schottenstein, founder of American Eagle, resigned last week, just before the annual general meeting. However, this was not due to differences of opinion, according to the company.

All at once or in pieces?

For Ahold Delhaize, the acquisition would make sense: the group is particularly strong in the east of the US and has been looking to expand in the US market for years. Already in 2018, CEO Frans Muller recorded that the supermarket company saw potential for consolidation in the market. With the addition of Albertsons, Ahold Delhaize would become a national player.

However, it is far from certain that a full takeover would take place, should an agreement ever be reached. Perhaps Albertsons only wants to sell parts of its business or separate formats. In order to avoid becoming too dominant in some states – notably Virginia – Ahold Delhaize might also have to divest some of its shops.