M&A Rumors: Are Target and Kroger Considering a Merger?

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Recent rumors claim that Target Corporation (NYSE:TGT) and Kroger Co (NYSE:KR) are considering a merger.

M&A Rumors: Are Target and Kroger Considering a Merger?

According to these M&A rumors, Target and Kroger have been talking about a possible merger since last year. Anonymous sources claim that these discussions are still underway. Neither of the retailers are willing to comment on the rumors.

A M&A deal between Target and Kroger could help the two companies better survive against Amazon.com, Inc.’s (NASDAQ:AMZN) ever-growing retail expansion. Neither company offers much of the others’ goods, but Amazon is at a point where it now offers general merchandise and groceries to its customers.

Target and Kroger would also both benefits from a M&A in different ways. For example, Kroger would gain access to TGT’s delivery service. This could help it combat Amazon’s Whole Foods. Target would also be able to better expand its grocery offerings, which is a goal is has been working toward already, reports FastCompany.

It’s also possible that there is no M&A agreement in the works between Target and Kroger. Other anonymous sources claim that this is the case. Instead, they sat that the two are working together on a Shipt deal.

Shipt is Target’s delivery service that it bought last year for $550 million. Kroger was one of the other companies that had an interest in acquiring Shipt, but it ended up passing one the deal, which let Target acquire it.

TGT stock was down slightly and KR stock was up 1% as of Friday morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/are-target-and-kroger-merging/.

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