After news of negotiations leaked on Thursday, The Kroger Co. and Albertsons Companies unveiled on Friday a definitive agreement to merge in a deal valued at $24.6 billion.

Under the deal, Cincinnati, Ohio-based Kroger plans to acquire all outstanding shares of Albertsons common and preferred stock for about $34.10 per share. The total enterprise value of the transaction includes the assumption of roughly $4.7 billion of Albertsons’ net debt.

Kroger's Rodney McMullen, who would serve as chairman and CEO of the merged company, said Albertsons will bring a complementary store footprint and 'operates in several parts of the country with very few or no Kroger stores.'

“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders,” Kroger Chairman and CEO Rodney McMullen said in a statement. “Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors.

“As a combined entity, we will be better-positioned to advance Kroger’s successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands [private-label] portfolio and delivering personalized value and savings,” McMullen explained. “We’ll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders.”