ZAANDAM, THE NETHERLANDS – Royal Ahold has entered into an agreement to acquire the Delhaize Group, Brussels, Belgium, for approximately $29 billion. In the United States, Royal Ahold is the owner of such banners as Stop & Shop, Giant, Martin’s and Peapod. Delhaize operates the Food Lion and Hannaford banners in the United States.
The merger is subject to regulatory approvals, but if completed it will create a business with global net sales of approximately $61 billion. At completion, Delhaize shareholders will receive 4.75 Ahold shares for each Delhaize share they own. Ahold shareholders will own 61% of the combined company’s equity, and Delhaize shareholders will own 39%.
“The proposed merger with Delhaize is an exciting opportunity to create an even stronger and more innovative retail leader for our customers, associates and shareholders worldwide,” said Dick Boer, chief executive officer of Ahold. “With extraordinary reach, diverse products and formats, and great people, we are bringing together two world-class organizations to deliver even more for the communities we serve.
“Our companies share common values, proud histories rooted in family entrepreneurship and businesses that complement each other well. We look forward to working together to reach new levels of service and success.”
Frans Muller, c.e.o. of Delhaize, added, “We believe that the proposed merger of Ahold and Delhaize will create significant value for all our stakeholders. Supported by our talented and committed associates, Ahold Delhaize aims to increase relevance in its local communities by improving the value proposition for its customers through assortment innovation and merchandising, a better shopping experience both in stores and on-line, investments in value, and new store growth. We look forward to working closely with the Ahold team to implement a smooth integration process and realize the targeted synergies.”
The transaction is expected to be completed by the middle of 2016.