GLOBAL: Ahold, Delhaize announce merger | Progresiv

Ahold and Delhaize have announced their plans to combine their businesses, creating a major new retailer in Europe and the US. The new entity, to be called Ahold Delhaize, will operate more than 6,500 stores across 10 countries and employ 375,000 staff. They generated combined sales of 54 billion euros and net profit of 1 billion euros in 2014.

The deal, which is expected to be completed by mid-2016, will see Ahold shareholders owning a 61% stake in the new company, with Delhaize shareholders owning 39%. The two sides said the move will help accelerate innovation, while delivering increased value and choice for customers. The merger is also expected to generate synergies of 500 million euros per year (to be fully realised in the third year after completion). 

Ahold Delhaize will also “have enhanced scale across regions”, and aims to “capitalise on the strong heritage and values of both companies, as well as complementary cultures, neighbouring geographies, and the impact of combining successful sustainability programmes”. The groups also noted that they are both “highly cash generative”, which will allow the new entity to “invest in future growth”. The deal is subject to regulatory approval. (www.kamcity.com)