Aldi Nord and Aldi Sud's Secret Merger Rumors: Will the Discounter Giants Reunite?
- By Niels Kruse
- 3 Min
Union on the Horizon? Speculation Arises about Merger of Albrecht Discount Store Chains - Aldi-Merger Speculation: Potential Reunion of Albrecht Discount Stores?
For nearly two years, the discount titan Aldi has seen no Albrecht at the helm. Theo junior was the last family member to operate actively. However, he left the supervisory board in October 2023. Months prior, Aldi Nord was already restructuring - a necessity since the discount group is perceived as outdated and falling behind. But now, the biggest transformation in the company's history may be looming: a merger with the sister company Aldi Sud.
Merger Talks: A Possible Game-Changer for Aldi?
According to "Wirtschaftswoche," the owner families of the two discounters are secretly holding merger discussions. The magazine cites family sources. The owners are the Heister family, which controls Aldi Sud through foundations, and two Albrecht family branches, which control Aldi Nord through foundations.
The exact plan for the food giants on how to or whether they will merge is still undecided. According to "Wirtschaftswoche," several options are on the table: a merger of the two companies under the umbrella of a joint holding company, with shares evenly distributed among the foundations of the different family divisions.
There was initially an aim to achieve a "reunion" of the two Aldis by the end of the year, according to individuals close to the families. However, there isn't much time left, and it's doubtful that this project will be completed by December's end, family sources say. Neither Aldi Nord nor Aldi Sud have officially responded to the plans, and inquiries have gone unanswered, according to "Wirtschaftswoche."
Retail analysts have long predicted the two Aldis to merge or at least consider a merger. Combining redundant structures would save vast sums of money. It is now planned to consolidate software and IT as the first step.
Family Feud Among the Albrechts
So far, a merger has failed due to a disagreement between two Albrecht branches from the north. However, the Heisters from the south have made a peace agreement a precondition for the merger, as "Wirtschaftswoche" has discovered.
The conflict between the two northern branches, the family of Theo Albrecht junior and the descendants of his deceased brother Berthold Albrecht, was about control and voting rights in the foundations through which the two families govern Aldi Nord. The dispute between the two branches escalated and needed resolution in court. Since then, at least the power relationships in the foundations have been clarified, it is said.
Aldi's owner families are famous for their impenetrable secrecy. Internal matters rarely, if ever, leak out. The revelation of potential merger discussions is quite a sensation. However, the economic situation of Aldi Nord is known to be challenging - at least compared to competition from the south and Lidl, the largest discount store in the country. In France, the company is making losses, and it has even withdrawn from Denmark.
Aldi's Position in the Market
Aldi North and South, with a combined 4,200 stores and around 11 percent market share, are currently the fourth-largest food chain in Germany. Lidl ranks third with 3,200 stores and an 18 percent market share. Leading the pack are Edeka (11,000 stores, 26 percent market share) and Rewe with 3,700 stores and a 21 percent market share.
Sources: "Wirtschaftswoche," "Frankfurter Allgemeine Sonntagszeitung," "Lebensmittelpraxis," "Business Insider."
- ALDI
- Discount retailer
- Theo Albrecht
- Reunification
- The Commission has not yet adopted a decision on the potential merger between Aldi Nord and Aldi Sud, which could significantly influence the financial landscape of the discount sector and broader general-news.
- If the merger between Aldi Nord and Aldi Sud happens, it may result in substantial cost savings from consolidated finance and business operations, but it remains to be seen whether the Commission will approve this move and what impact it will have on the competition within the European market.
