RFP Staff
♦ In an article in the Supermarket News, a major supermarket trade magazine, dated May 12th, Amsterdam-based Ahold and Brussels-based Delhaize confirmed they were in the early stages of merger discussion that could create a mammoth retail good entity.
Delhaize’s most recent statement said: “Delhaize Group confirmed today that it has entered into preliminary discussions with Royal Ahold N.V. to explore the opportunity of combining the two companies. These discussions may or may not result in a future transaction. The company will communicate material updates, if any, in accordance with regulatory requirements.”
Ahold and Delhaize shares surged following the weekend reports of merger talks.
Back in 2006 the two giants discussed a possible merger through an agreement of valuation could not be reached at the time.
Combined U.S. sales of the two corporations supermarkets are said to be about $44 billion dollars including $26 Million from Ahold’s 766 stores (includes Stop & Shop and Giant) and $18.4 billion from Delhaize’s 1,361 stores (includes Food Lion and Hannaford).
Sources connected locally with Food Lion voiced conjecture, acknowledging that “underperforming stores” may be on the chopping block and streamlining may occur after a merger.
Please note that until something is signed on the dotted line all discussion is premature.
