‘Ahold Delhaize’ Retail Giant Created in European Supermarket Mega-Merger
24 Jun 2015 --- Two of Europe’s largest supermarket retailers, Dutch-owned Royal Ahold and Belgian Delhaize have announced the intention to combine their businesses through a merger of equals, creating a business with an annual turnover of €54bn.
Ahold and Delhaize businesses reported aggregated net sales of €54.1 billion in 2014. The transaction will create significant value, with anticipated run-rate synergies of €500 million per year to be fully realized in the third year after completion.
In a joint statement, Jan Hommen, Chairman of Ahold, and Mats Jansson, Chairman of Delhaize, said: "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."
The transaction is expected to be completed mid-2016, following regulatory clearances, associated consultation procedures and shareholder approval. The new retailer will be the fourth largest in Europe and the fifth largest in the US, according to analysts Natixis.
Mats Jansson, Chairman of Delhaize Group, will become Chairman of Ahold Delhaize, while Jan Hommen, Chairman of Royal Ahold, and Jacques de Vaucleroy, Delhaize Group Director, will become Vice Chairmen of Ahold Delhaize.
Dick Boer, Chief Executive Officer of Royal Ahold, will become Chief Executive Officer. Frans Muller, Chief Executive Officer of Delhaize Group, will become Deputy Chief Executive Officer and Chief Integration Officer.
