BENELUX: Ahold, Delhaize in merger discussions | Progresiv
Dutch grocer Ahold and Belgian rival Delhaize are exploring a potential tie-up, a source familiar with the matter said, sending their shares soaring, though analysts were split over the merits of any deal, according to Reuters New Agency. 
"They're sniffing around, exploring the options, but it's very early days," the source said on Monday, following weekend press reports about a link-up that could create a 25-billion-euro business with a focus on the United States.
Both companies declined to comment.
A close geographic fit is the main argument for a tie-up, analysts said. Both companies have Benelux roots, make the majority of their sales on the U.S. east coast with Delhaize's Food Lion and Ahold's Stop & Shop and Giant chains, and have operations in Central and Eastern Europe.
A deal could potentially increase bargaining power with suppliers, translating into lower prices for shoppers and larger market shares.
Delhaize's most recent large scale acquisition, the 932 million euro purchase of Serbian retailer Delta Maxi in 2011, has also been branded a failure by many analysts. After a series of writedowns, caused by the weak Serbian economy, and sales of units in minor markets such as Albania and Macedonia, only 50 million euros of goodwill related to the acquisition are left on Delhaize's balance sheet.
Since 2006, Ahold's shares have outperformed Delhaize's, tripling in value compared with a 50 percent gain at the Belgian firm. Ahold's market capitalization is now twice that of Delhaize and so a tie-up would likely not be a merger of equals, as envisaged before, but rather Ahold buying Delhaize.
