International food retailers Delhaize Group (Delhaize) and Koninklijke Ahold N.V. (Ahold) announced June 24 that they have entered into an agreement to merge. The combined company, which will be named Ahold Delhaize, will have a portfolio of strong, trusted local brands with more than 375,000 associates serving more than 50 million customers every week in the United States and Europe.
According to the announcement, the merger will create enhanced scale across regions, market-leading retail offerings to serve customers’ changing needs, and a strong financial profile from which to fund innovation and investments in future growth. Ahold Delhaize will capitalize on the strong heritage and values of both companies, as well as complementary cultures, neighboring geographies, and the impact of combining successful sustainability programs.
The merger will take place through a cross-border legal merger of Delhaize into Ahold. Delhaize shareholders will receive 4.75 Ahold ordinary shares for each Delhaize ordinary share. Ahold will terminate its ongoing share buyback program; €1 billion will be returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the transaction. The company, Ahold Delhaize, will be listed on the Amsterdam Stock Exchange and the Brussels Stock Exchange.
Dick Boer, currently CEO of Ahold, will be the CEO of the combined company. Frans Muller, currently CEO of Delhaize, will be Deputy CEO and Chief Integration Officer. Jeff Carr, currently CFO of Ahold, will be CFO. Pierre Bouchut, currently CFO of Delhaize, will become Chief Operating Officer for Europe. In the United States, the current Chief Operating Officers of Ahold and Delhaize, James McCann and Kevin Holt, will stay on as COOs of their respective businesses.
Pending shareholder approvals and regulatory clearance, as well as other customary conditions, the deal is expected to complete mid-2016.
According to the announcement, the merger will create enhanced scale across regions, market-leading retail offerings to serve customers’ changing needs, and a strong financial profile from which to fund innovation and investments in future growth. Ahold Delhaize will capitalize on the strong heritage and values of both companies, as well as complementary cultures, neighboring geographies, and the impact of combining successful sustainability programs.
The merger will take place through a cross-border legal merger of Delhaize into Ahold. Delhaize shareholders will receive 4.75 Ahold ordinary shares for each Delhaize ordinary share. Ahold will terminate its ongoing share buyback program; €1 billion will be returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the transaction. The company, Ahold Delhaize, will be listed on the Amsterdam Stock Exchange and the Brussels Stock Exchange.
Dick Boer, currently CEO of Ahold, will be the CEO of the combined company. Frans Muller, currently CEO of Delhaize, will be Deputy CEO and Chief Integration Officer. Jeff Carr, currently CFO of Ahold, will be CFO. Pierre Bouchut, currently CFO of Delhaize, will become Chief Operating Officer for Europe. In the United States, the current Chief Operating Officers of Ahold and Delhaize, James McCann and Kevin Holt, will stay on as COOs of their respective businesses.
Pending shareholder approvals and regulatory clearance, as well as other customary conditions, the deal is expected to complete mid-2016.
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