Kroger, Ahold Delhaize may be talking merger

Cincinnati-based The Kroger Co. and Ahold Delhaize, with U.S. operations based in Carlisle, Pa., may be talking merger, according to a report in the Cincinnati Business Courier.

Ahold Delhaize, an international food retail company based in Zaandam, The Netherlands, and Kroger both have strong store brand programs.

The Cincinnati Business Courier, citing a Bloomberg report, said that “Twitter speculation referenced Ahold reportedly has hired advisers to look into a possible bid for Kroger at $32 a share.” According to Bloomberg, Bruno Monteyne, a London-based supermarket analyst at Bernstein, said the deal makes sense in that it would consolidate the fragmented U.S. grocery market.

“The increased scale would make Ahold Delhaize-Kroger the leading U.S. grocer with buying power and distribution efficiency in line with Walmart but much stronger in ‘food experience’ and online,” Monteyne wrote in a research report. “Ahold-Kroger … would be the leading player in this unconsolidated market and would have fantastic firepower to compete as the No. 1 player in the U.S. food and grocery market.”

Read the Cincinnati Business Courier’s report here.