Secret Merger Chatter Swirls: Will Aldi North and Aldi South Finally Reunite?
- by Niels Kruse
- 3 Min
Could there be prospective unification of the Albrecht discount stores? - Speculation Arises: Potential Reunion of Albrecht DiscountChain?
Aldi, the discount powerhouse, has been sans Albrecht for nearly two years. Theo junior, the last of the founding family members in active operation, stepped down from the supervisory board in October 2023. Months prior, Aldi North ventured into restructuring - necessity, since the budget-friendly bunch was considered out-of-date and antiquated. But now, the biggest shift in Aldi's history might be on the horizon: a potential reunion with its sister company, Aldi South.
Holding Company Merger? A Follow-Up to Aldi's Past Family Squabbles?
According to whispers from "Wirtschaftswoche," the owner families of these two discount titans are in clandestine merger talks. The magazine cites family insiders. The owners are the Heister family, who hold Aldi South through foundations, and two branches of the Albrecht family, who own Aldi North through foundations.
The terms of the food giants' proposed merger are still up in the air. Sources from "Wirtschaftswoche" suggest several possibilities: a merger of the two companies under a joint holding company, with shares evenly distributed among the various family foundations.
Originally, the families aimed to rekindle the relationship between the two Aldis by year's end, say those close to the families. However, time is running short, and by the end of December, such a reunion seems hardly attainable, they assert. Neither Aldi North nor Aldi South have commented on the plans, and inquiries have gone unanswered, according to "Wirtschaftswoche."
Retail experts have long predicted a merger or at least a collaboration between the two Aldis, as consolidating duplicate structures could save substantial costs. The first planned step is integrating software and IT systems.
A Family Feud: History Repeats Itself?
So far, a merger's failure was due to a dispute between two Albrecht branches from the north. But, the Heisters from the south have made a ceasefire a prerequisite for a merger, as "Wirtschaftswoche" uncovers.
The beef between the two northern branches - the family of Theo Albrecht junior and the descendants of his late brother Berthold Albrecht - centered around control and voting rights in the foundations that hold Aldi North. The clash escalated, requiring court intervention. At least since then, the power dynamics in the foundations have been clarified, it's reported.
Aldi's owner families are notorious for their Herculean secrecy. Internal matters seldom leak. The fact that possible merger talks have surfaced now is quite a sensation. However, Aldi North's economic troubles - particularly compared to its southern and Lidl competitors - are common knowledge. In France, the company is hemorrhaging money, and it has even abandoned Denmark.
Aldi North and South, with approximately 4,200 stores and an 11% market share, are currently the fourth-largest food chain in Germany, with the South raking in about a quarter more sales than the North. Lidl ranks third with 3,200 stores and a 18% market share. At the top of the heap are Edeka (11,000 stores, 26% market share) and Rewe with 3,700 stores and a 21% market share.
Sources: "Wirtschaftswoche", "Frankfurter Allgemeine Sonntagszeitung", "Lebensmittelpraxis", "Business Insider".
- ALDI
- Discount supermarket
- Theo Albrecht
- Reunification
- Despite the ongoing murmurs about a potential reunion, the Commission has not yet adopted a decision regarding the proposed merger between Aldi North and Aldi South.
- If the merger does indeed occur, it could have significant implications for the industry, finance, and business sectors, as consolidating the two companies could lead to cost savings and potential changes in market dynamics.
