Whispers Rumble the Discount Giants' Reunion: Aldi North and Aldi South on the Verge of Merging?
mergerprospects: potential consolidation of Albrecht discount store chains - Aldi supermarket chain cooperation potential restart rumors circulating
Pen by Niels Kruse―≈ 3 Minutes Read
For nearly two years, we've been sailing without Albrecht at the helm of discounter Aldi. Theo junior, the last of the founding family members in active operations, stepped down from the supervisory board in October 2023. Months prior, Aldi North had already commenced a significant overhaul — a necessary shift, for the discount group is often criticized as outdated and antiquated. Yet, the biggest wave in this company's history may be looming: a marriage of the sister company Aldi South.
Will a Joint Conglomerate Unite Aldi North and Aldi South?
According to information from "Wirtschaftswoche," the owner families of the two greengrocers are discreetly engaging in merger negotiations. The publication cites family insiders as the source. The owners are the Heister family, who control Aldi South via foundations, and the two branches of the Albrecht family, who manage Aldi North through trusts.
It's unclear at this stage what form this food empires' union will take. "Wirtschaftswoche" reports that several possibilities are up for debate, such as a merger of the two businesses under the roof of a joint holding company, with shares to be distributed equally among the family trusts of the different branches.
Initially, the families supposedly desired a "reconciliation" of the two Aldis before the year's end, as confidants claim. However, the clock is ticking, and it's becoming increasingly unlikely that this goal will be achieved by New Year's, family sources say. Neither Aldi North nor Aldi South has publicly commented on these plans, nor have responses to inquiries been forthcoming, according to "Wirtschaftswoche."
Retail analysts have long anticipated the union of these two Aldis. Eliminating duplicate structures would generate massive savings. For instance, it's planned that software and IT will be merged.
The Rift Among the Albrechts
Thus far, a merger has been unsuccessful due to a feud between two Albrecht branches hailing from the north. However, the Heisters from the south have stipulated resolution of this discord a prerequisite for the merger, as "Wirtschaftswoche" reveals through its investigations.
The disagreement between the two northern branches, the kin of Theo Albrecht junior and the descendants of his deceased brother Berthold Albrecht, centered on control and voting rights in the foundations through which the two families own Aldi North. The quarrel between the two branches escalated and necessitated a court resolution. Since then, at least the power dynamics within the foundations have been sorted out, "Wirtschaftswoche" reports.
Aldi's owner families are infamous for their ironclad secrecy. Internal affairs rarely, if ever, surface. The recent leak of possible merger talks is indeed a sensation. However, the financial situation of Aldi North is a matter of public knowledge, compared to its competition in the south and Lidl, the country's biggest discount store. In France, the company is incurring losses, and it has even evacuated Denmark.
Aldi's Ranking Behind Edeka, Rewe, and Lidl
Aldi North and South, with a combined 4,200 stores and around 11 percent market share, occupy the fourth spot among Germany's food chains. Lidl ranks third with 3,200 stores and 18 percent market share. Edeka (11,000 stores, 26 percent market share) and Rewe (3,700 stores, 21 percent market share) lead the pack.
New Horizons
The merger could herald a unified front and new opportunities for the German discount giant to challenge market leaders like Walmart and Target on the global stage.
- ALDI
- Discount supermarket
- Theo Albrecht
- Reconciliation
Sources:
- Wirtschaftswoche
- Frankfurter Allgemeine Sonntagszeitung
- Lebensmittelpraxis
- Business Insider
- The Commission has not yet adopted a decision regarding the potential merger of Aldi North and Aldi South, which could significantly impact the finance and business sectors.
- In the event of a merger, the combined entity may leverage the synergies in shared industries such as IT and software to challenge global market leaders like Walmart and Target.
