BRUSSELS, Belgium & ZAANDAM, the Netherlands -- International grocery retailers Delhaize Group and Royal Ahold NV said that they have entered into an agreement to merge. The combined company, which will be named Ahold Delhaize, will have a portfolio of strong retail brands with more than 6,500 stores in Europe and the United States.
The company will have enhanced scale across regions, market-leading retail offerings and a strong financial profile. Ahold Delhaize will capitalize on the strong heritage and values of both companies, as well as complementary cultures, neighboring geographies and the impact of combining successful sustainability programs.
"This is a true merger of equals, combining two highly complementary businesses to create a world-leading food retailer. The transaction delivers a compelling value proposition for our shareholders, a superior offering for our customers and attractive opportunities for our associates," said Jan Hommen, chairman of Ahold, and Mats Jansson, chairman of Delhaize.
Jansson will become chairman of Ahold Delhaize. Hommen and Jacques de Vaucleroy, Delhaize Group director, will become vice chairmen of Ahold Delhaize. Dick Boer, CEO of Royal Ahold, will become CEO. Frans Muller, CEO of Delhaize Group, will become deputy CEO and chief integration officer.
The companies expect the transaction to be completed mid-2016, following regulatory clearances, associated consultation procedures and shareholder approval. The Executive Committee and board of directors of Delhaize as well as management and supervisory boards of Ahold unanimously support and recommend the transaction.
Delhaize Group is a Belgian international food retailer in seven countries on three continents. At the end of March 2015, Delhaize Group’s sales network consisted of approximately 3,410 stores. In 2014, Delhaize Group recorded $29.4 billion in revenues.
Ahold is an international retailing group based in the Netherlands and active in the United States and Europe. With more than 3,200 stores.
Ahold USA is based in Carlisle, Pa., and Quincy, Mass. Its supermarket brands include Stop & Shop, Giant Food, Giant Food Stores and Martin’s Food Markets, as well as online grocery service Peapod.
Salisbury, N.C.-based Delhaize America operates the Food Lion, Hannaford Bros. and Bottom Dollar Foodgrocery brands.
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