Delhaize-Ahold Merger Nears Finish Line
After a year in the making, the planned merger between Ahold and Delhaize is set for completion at the end of July, pending final approval by the U.S. Federal Trade Commission.
The international retail conglomerates revealed their intent to merge on June 24, 2015, with approval granted by the Belgian Competition Authority in March.
When complete, Ahold Delhaize, will operate more than 6,500 stores under a portfolio of established banners with more than 375,000 associates serving more than 50 million customers weekly.
In conjunction with confirming the timing of when the planned merger will close, Ahold provided details on the $902 million capital repayment and reverse stock split. Ahold shareholders approved the repayment, first announced June 24, 2015, and the repayment and reverse stock split are expected to take place after close of the New York Stock Exchange trading hours on July 15, via consolidating every 17 common shares into 16 common shares and a capital repayment of approximately $1.16 per remaining share.
Brussels-based Delhaize Group is a Belgian international food retailer present in seven countries, with a store network of 3,524 stores and approximately 154,000 employees. In the U.S., it operates the Hannaford and Food Lion banners.
Headquartered in Zaandam, the Netherlands, Ahold operates 3,253 stores in five countries, employing approximately 236,000 associates. The retailer's U.S. regional operating divisions include Stop & Shop New England, Stop & Shop New York Metro, Giant/Landover, Giant/Carlisle and online grocer Peapod.