Kroger is the owner of Albertsons, but the company is operated as a joint venture. Kroger owns a 52% stake in the company, while Albertsons shares the other 48%. Kroger has been the primary owner of Albertsons since 1998. However, in February 2017, Kroger announced that it would sell its stake in the company to Cerberus Capital Management, a private equity firm. The sale is expected to be completed in early 2019. This transaction will give Cerberus a majority ownership of Albertsons, marking the first time that a private equity firm has acquired a major grocery chain in the US.
The sale has raised eyebrows among some consumers and labor unions, who argue that Cerberus is a hostile buyer and that Kroger is ceding too much control over Albertsons. However, Kroger contends that the sale will allow the company to focus on its core grocery business and to invest in digital initiatives. Kroger has also argued that the sale will allow the company to better compete with Amazon and Walmart, two companies that have been investing heavily in grocery stores. Overall, Kroger’s sale of its stake in Albertsons appears to be a prudent decision that will allow the company to focus on its core grocery business. However, the sale has raised eyebrows among some consumers and labor unions, who argue that Cerberus is a hostile buyer and that Kroger is ceding too much control over Albertsons.
