Kroger is rumored to be purchasing Winn-Dixie, a grocery store chain with over 1,200 stores across the US. If the purchase is finalized, it would be Kroger’s largest acquisition in over 20 years.
The purchase is expected to close in the fourth quarter of 2018.
The Kroger-Winn-Dixie merger would create a grocery chain with over 2,000 stores. The combined company would have a market share of about 16%.
Kroger currently owns about 12% of Winn-Dixie and the deal would give it ownership of the chain.
The purchase price has not been disclosed, but analysts estimate it to be around $2.9 billion.
The purchase would give Kroger access to Winn-Dixie’s competitive edge in the southern US. Winn-Dixie is known for its lower prices and Kroger is looking to replicate that in its stores.
The purchase is controversial because of Winn-Dixie’s low wage and benefit policies. The chain has been criticized for paying its employees low wages, providing inadequate benefits, and forcing employees to work excessive hours.
Some workers have called for a boycott of the chain.
The purchase is unlikely to have a major impact on the grocery industry. The two companies have different business models and the merger is unlikely to result in significant changes in the market.
Kroger is expected to continue to grow while Winn-Dixie will likely remain a smaller chain.
