Aldi Discount Giants: Rumors of a family-driven Merger
Aldi Consolidation: Could a Single Albrecht-Owned Discount Chain Be Emerging? - Aldi-Albrecht Merger Rumors: Potential Reunion of Discount Retail Giants?
By Niels Kruse(+ - 3 Min)
The absence of an Albrecht at the helm of discount powerhouse Aldi has persisted for almost two years. Former family member Theo junior, the last actively operating, relinquished his position on the supervisory board in October 2023. Aldi North underwent restructuring months prior, as this discount titan struggled to keep pace with the times. A game-changer may now be on the horizon: a merger with sister company Aldi South.
Is a Holding Company the Path to Aldi North and Aldi South Union?
Reports from "Wirtschaftswoche" suggest that the owner families of both discounters are engaging in secret merger negotiations. Insider family sources are cited as the basis for this claim. The owners are the Heister family, controlling Aldi South via foundations, and two branches of the Albrecht family, who own Aldi North via foundations.
Plans for the merger are still evolving, with several potential options under consideration. According to "Wirtschaftswoche", a merger under a single holding company, whose shares would be evenly distributed among the founding family branches, is one of the prospective arrangements.
An initial reunion goal of year's end has allegedly passed, according to family circles. It is now considered unlikely that the merger will materialize by December 31. Neither Aldi North nor Aldi South has provided official comment on the matter, nor have they responded to queries, as reported by "Wirtschaftswoche".
Retail analysts have long anticipated a merger or collaboration between the two Aldis, seeing that consolidating duplicate structures could result in cost savings. Coordinating software and IT infrastructure is reportedly the first step toward merging the companies.
The Albrecht Family's Internal Strife
Previous attempts at merging the Aldis have stalled due to a disagreement between two Albrecht branches in the north. However, the Heisters from the south have made concessions for the merger – namely, a peace agreement – as recent research by "Wirtschaftswoche" indicates.
The dispute between the northern branches involved control and voting rights in the foundations that hold Aldi North. conflict escalated and resulted in court action. Since the resolution of the conflict, it's said that power ratios in the foundations have been clarified.
The notoriously secretive Aldi owner families seldom reveal internal details. However, the possibility of merger negotiations becoming public knowledge is unexpected, showing the current economic challenges that Aldi Nord faces in comparison to its southern and Lidl competitors.
Ranking the Major Players in the German Food Market
Aldi Nord and Süd, with a combined 4,200 stores and approximately 11% market share, currently rank fourth among German food retailers, with the South generating an approximately 25% higher sales volume than the North. Lidl ranks third with 3,200 stores and 18% market share. Edeka leads the pack with 11,000 stores and 26% market share, followed by Rewe with 3,700 stores and 21% market share.
TL;DR: Rumors suggest that Aldi Nord and Aldi Süd are in confidential talks about a potential merger under a single holding company. The owners are the Heister family, controlling Aldi South via foundations, and the Albrecht family, owners of Aldi North via foundations. The negotiations come amid Aldi Nord's expansion plans, including opening 800 new locations by 2028 and investing $9 billion in expansion efforts. This merger could strengthen Aldi's market position in Europe and potentially lead to further expansion in key regions like the Americas.
- The Commission has not yet adopted a decision regarding the potential merger of Aldi North and Aldi South, as the owner families are still negotiating the details, such as consolidating under a single holding company in the finance industry.
- Despite the ongoing talks, the merger may have significant implications for various business sectors, including the industry, as a united Aldi could enhance their market position in Europe and potentially explore expansion opportunities, particularly in the Americas.
