Aldi Nord And Aldi Süd Owners Explore Merger

The confidential discussions were reported by several German media outlets, including Handelsblatt and Wirtschaftswoche, citing sources close to the families.

Aldi’s roots date back to 1945, when brothers Theo and Karl Albrecht took over their family’s Essen grocery store and rapidly expanded it.

Within a decade, their business had grown to over 100 stores, however, a disagreement in 1961 led to the company’s division into two separate entities: Aldi Nord and Aldi Süd.

Theo Albrecht’s Aldi Nord expanded throughout northern Germany, Benelux, France, Poland, and Spain/Portugal, while Karl Albrecht’s Aldi Süd focused on southern Germany, the US, the UK, and Australia.

Despite sharing the A logo and a collaboration on purchasing, private labels and advertising, Aldi Nord and Aldi Süd continue to operate independently, with distinct branding in some markets and completely separate legal structures.

Exploratory Stage

The potential merger, which could be a ‘historic’ move, is still in the exploratory stages and would involve creating a joint holding company, with equal representation for both families.

While a full merger by the end of 2025 is unlikely, initial integration could begin with IT and software operations, to leverage synergies. Subsidiaries would initially remain unaffected.

The plan also includes the potential for aligning international strategies over time, while preserving some initial operational independence, according to reports.

In 2020, Aldi Nord and Aldi Süd announced plans to combine approximately 100 private-label brands by the end of the year.

Increased competition, the need for greater investment in technology and logistics, an expanding global presence, and a thwarted takeover attempt of Aldi Süd are likely drivers for the discussions.

However, differing company cultures after 60 years of separate operation, potential regulatory hurdles, and complex legal issues related to family foundations present significant challenges.

Neither Aldi Nord nor Aldi Süd has issued an official comment on the reports.

Recently, it was reported that Dutch retailer Ahold Delhaize had commenced preliminary negotiations to acquire Carrefour at the end of last year.