Secret Merger Chatter: Could Aldi North and Aldi South Be Reuniting? An Unofficial Glimpse
- by Niels Kruse
- 3 Min
Will there be a consolidation of the Albrecht-owned discount supermarkets, Aldi-Fusion? - Aldi-Union Speculation: Could Albrecht Discount Brothers Be Rejoining Forces?
For nearly two years, Aldi, the discount giant, hasn’t been steered by an Albrecht. Theo junior, the last founding family member operating within the company, resigned from the supervisory board in October 2023. Months earlier, Aldi North had already begun the process of revamping the outdated company. But now, the most substantial change in the company’s history might be on the horizon: a potential merger with sister company Aldi South.
Merger Talks Under the Radar?
According to reports in "Wirtschaftswoche," the owner families of the two discount stores are engaged in secret merger discussions. Family insiders are the source of these allegations, as per the magazine. The owners are the Heister family, which holds Aldi South through foundations, and two branches of the Albrecht family, which control Aldi North through foundations.
Exactly how the food giants plan to merge is still being finalized, and different scenarios have been proposed, as suggested by "Wirtschaftswoche." One possible arrangement involves a merger of the two companies under the umbrella of a joint holding company, with shares to be divided equally among the different family branches’ foundations.
Initially, the families aimed to achieve a "reunion" of the two Aldis by the year's end, according to sources close to the families. However, with time running out, it's increasingly unlikely that this ambitious project will be completed by New Year’s, insiders claim. Neither Aldi North nor Aldi South has officially commented on the proposed plans, and inquiries remain unanswered, according to "Wirtschaftswoche."
Experts within the retail industry have long anticipated the possibility of the two Aldis merging or collaborating in some way. Eliminating duplicate structures would result in substantial savings. Therefore, it is now planned to streamline the software and IT departments as a preliminary move.
Family Feud Among the Albrechts
A previous merger attempt was hampered by a dispute between two Albrecht branches from the north. However, the Heisters from the south insisted on a peace agreement as a requisite for the merger, as research by "Wirtschaftswoche" shows.
The disagreement between the two northern branches, the family of Theo Albrecht junior and the descendants of his deceased brother Berthold Albrecht, centered around control and voting rights in the foundations that the two families use to own Aldi North. The dispute between the two branches intensified and required court intervention. Since then, at least the power ratios within the foundations have been clarified, it’s said.
Aldi’s owner families are known for maintaining the highest degree of secrecy. Rarely, if ever, do internal matters become public knowledge. The fact that possible merger talks have surfaced now is indeed remarkable. In contrast, the economic situation of Aldi North is widely known - especially in comparison to competition from both the south and Lidl, the country's largest discount store. In France, the company is incurring losses, and it has even left Denmark.
Aldi's Place in the Market
Aldi North and South, with a combined 4200 stores and around 11 percent market share, currently rank fourth among German grocery chains, with the South generating roughly a quarter more sales than the North. Lidl ranks third with 3200 stores and 18 percent market share. Market leaders are Edeka (11,000 stores, 26 percent market share) and Rewe with 3700 stores and 21 percent market share.
Sources: "Wirtschaftswoche", "Frankfurter Allgemeine Sonntagszeitung", "Lebensmittelpraxis", "Business Insider".
- ALDI
- Discount Stores
- Theo Albrecht
- Reunion
- The Commission has not yet adopted a decision on the potential merger of Aldi North and Aldi South, two discount giants in the industry, despite reports suggesting that the owner families are engaged in secret discussions.
- When considering the current market landscape, the potential financial implications of a reunion between Aldi North and Aldi South could significantly impact the discount stores' business, as streamlining operations could result in substantial savings, enabling them to potentially challenge market leaders, such as Edeka and Rewe, in the German grocery market.
