CINCINNATI, OH – Rumors are building that Kroger could be contemplating a Market Basket acquisition. Considering that Kroger doesn't yet have a New England presence despite being the largest supermarket chain in the United States, a Market Basket purchase could make a lot of sense for the retailer. Doing so would instantly establish a strong foothold for Kroger in the region, something which CEO Rodney McMullen might find highly appealing.

The question is would Kroger be willing to consider a deal of this magnitude so soon after finishing its biggest acquisition in the last decade in purchasing Harris Teeter last January. This $2.5 billion deal already added 227 stores to Kroger's ledger. Would McMullen want to add more so soon?

Steve Watkins, a reporter for the Cincinnati Business Courier had a chance to ask McMullen exactly this question at Kroger's annual business meeting last June. His answer revealed that Kroger wouldn't be opposed to the idea of another acquisition, at least in principle.

“If some merger opportunity came up, in all likelihood we’d look at it,” McMullen said. “We’re always looking to grow.”

As AndNowUKnow has previously covered, if Kroger did enter the fray, its biggest competition would come from Market Basket's former President and CEO Arthur T. Demoulas whose latest $1.5 billion offer currently enjoys frontrunner status in talks.

Many however, including myself, wonder if Kroger might step in and take that title from Demoulas.

Stay tuned to AndNowUKnow for further updates on the Market Basket situation as the news breaks.   

Kroger

Market Basket