Another large merger may be on the horizon for the industry, with new reports of a prospective joining between Albertsons and Sprouts Farmers Market setting the buy-side sector abuzz. The companies have reportedly held preliminary talks in regards to the strategic move.
According to those close to the matter, Bloomberg stated, the companies have completed early stage discussions over recent weeks for the move. However, these sources also asserted that the talks may not guarantee the deal’s realization.
If merged, Sprouts would add a significant presence of natural and organic foods to the chain of banners under the Albertsons name. As for Sprouts, this move would take the currently public chain private under the ownership of Albertsons’ parent, Cerberus Capital Management.
Thus far, a number has not been revealed for the potential transaction, although Seeking Alpha speculated that a bidding war could ensue as the companies move further towards a merger.
At this time, Cerberus and Sprouts have not commented on the proposed merger, although Albertsons spokeswoman Chris Wilcox did state, according to USA Today, that the company does not comment on rumors or speculation.
Albertsons currently operates over 2,000 stores, with Sprouts Farmers Market offering its goods in nearly 300 stores.
Will Albertsons and Sprouts be the latest in strategic buy-side mergers? Deli Market News will keep you covered.