Rumors Swirl About Aldi North and Aldi South: Is a Merger on the Horizon?
- By Niels Kruse
- 3 Min
Aldi Merger Rumor: Speculations on the Potential Combination of Albrecht Discount Stores - Potential Aldi-Fusion: Could Albrecht Discount Retailers be Reuniting?
The discounter giant Aldi has been without an Albrecht family member at the helm for near two years. Theo junior, the last operational member of the founding family, resigned from the supervisory board in October 2023. Months prior, Aldi North had already kicked off a company-wide restructuring - a necessary move, as the discount sector is perceived as outdated and lagging behind. And now, a seismic shift may be on the horizon: a potential merger with sister company Aldi South.
dark_mode
:A Hidden Negotiation:
According to a source in "Wirtschaftswoche," the owner families of the two discounters are privately discussing a merger. Insiders close to the families claim that such talks are underway. Notably, the Heister family handles Aldi South through foundations, while two branches of the Albrecht family control Aldi North through similarly arranged foundations.
The specifics of the proposed union are still being ironed out. Rumors suggest a scenario where the two food titans would merge under the roof of a joint holding company, with shares evenly distributed amongst the family's various foundations.
Originally, the families had aimed to bring the two Aldis together by year's end. However, that goal seems increasingly unrealistic as the deadline approaches, with many doubting the feasibility of completing the project by the end of December. Neither Aldi North nor Aldi South have officially commented on the matter, and inquiries have been left unanswered, according to "Wirtschaftswoche."
dark_mode
:A Long-Awaited Reunion:
A merger has previously failed due to a squabble between the two Albrecht branches of the north. However, the Heister family from the south reportedly demands that the merger be preceded by a resolution of this dispute as a condition for moving forward, as reported by "Wirtschaftswoche."
The spat between the two northern branches involved control and voting shares in the foundations through which the families own Aldi North. The conflict escalated to legal battle before reaching resolution. Since then, at least the power dynamics within the foundations have been clarified, it is said.
Information about internal matter leaks from Aldi's owner families is rare. The fact that possible merger talks are becoming public is, therefore, indeed a sensation. However, Aldi North's economic situation is generally known - in comparison to its competition from the south and Lidl, the largest discount store in the country. In France, the company is struggling with losses, and it has even abandoned Denmark.
dark_mode
:Ranking the Grocery Giants
Aldi North and South, with a combined 4,200 stores and around 11% market share, currently fall as the fourth-largest food chain in Germany. Among other contenders, Lidl is ranked third with 3,200 stores and 18% market share. Largest are Edeka (11,000 stores, 26% market share) and Rewe with 3,700 stores and 21% market share.
Sources:
- "Wirtschaftswoche"
- "Frankfurter Allgemeine Sonntagszeitung"
- "Lebensmittelpraxis"
- "Business Insider"
- The information and insights provided on the potential scenarios and enrichment data are hypothetical, as there is no reported merger ongoing between Aldi Nord (Aldi North) and Aldi Süd (Aldi South).
- Aldi Süd is focusing on aggressive expansion in the U.S., including store openings, acquisitions, and leadership changes, not on any potential merger with Aldi Nord.
- ALDI
- Discount Retailer
- Theo Albrecht
- Reunification
- The Commission has not yet adopted a decision regarding the potential merger between Aldi North and Aldi South, as private negotiations between the owner families of the two discounters continue.
- Despite rumors suggesting a potential merger, the recent financial struggles of Aldi North, particularly in France, might impact the discussions and business strategies in the general-news context of the discounter industry.
