Will there be a reconciliation between the Albrecht-owned discount retailers, Aldi? - Reunion Rumors Surround Albrecht Discount Corporation (Aldi-Fusion)
[Align Text Left]
Aldi Nord and Aldi Südmay Merge to Form a Global DiscountRetail Giant
By Niels Kruse
After almost two years without an Albrecht at the helm of discount retailer Aldi, secret talks of a potential merger between Aldi Nord and Aldi Süd are underway, according to reports from "Wirtschaftswoche".
Months after Theo junior left the supervisory board of Aldi in October 2023, Aldi Nord had already initiated restructuring. However, a major transformation may be on the horizon: a merger with Aldi Süd, its sister company.
The Heister family, which owns Aldi Süd through foundations, and two branches of the Albrecht family, who own Aldi Nord, are reportedly conducting clandestine merger negotiations, as per sources within the families.
While the specifics of the proposed merger remain unclear, several scenarios are being considered. A potential solution involves a common holding company, with shares equally distributed among the family foundations. If achieved, this would mark the biggest change in the company's history since its inception.
Aldi's owner families are known for their secrecy, and such information rarely leaks out. But the economic situation of Aldi Nord—particularly when compared to its competition—is well-known. Aldi Nord is struggling in France, while its Danish operations have even been terminated.
The Headwinds of Disagreement
Attempts to merge the two entities have been thwarted in the past due to a dispute between two Albrecht branches from the north. However, the Heisters from the south recently agreed to make peace as a prerequisite for the merger, according to research by "Wirtschaftswoche".
The disagreement revolved around control and voting rights in the foundations that hold Aldi Nord. The battle between the two northern branches, the family of Theo Albrecht junior and the descendants of his deceased brother Berthold Albrecht, escalated and required a resolution in court.
Positioning for dominance in a potential merger could be one possible motivation for settling the feud. A merger would create one of the world's largest discount retail chains, combining Aldi Nord's approximately 70,000 employees and €27 billion in annual sales with Aldi Süd's more than 200,000 employees and €76 billion in annual sales. As the fourth-largest grocery chain in Germany, the combined entities would rival Edeka, Rewe, and Lidl, with nearly 13,000 stores worldwide.
[Sources: "Wirtschaftswoche", "Frankfurter Allgemeine Sonntagszeitung", "Lebensmittelpraxis", "Business Insider"]
-Despite the ongoing negotiations, the Commission has not yet adopted a decision regarding the potential merger between Aldi Nord and Aldi Süd.-The proposed merger, if successful, could have significant implications for the finance and business sectors, as the combined entities would form a global discount retail giant with over 270,000 employees and annual sales exceeding €103 billion, potentially impacting general-news headlines worldwide.
){kind=link}