ZAANDAM, the Netherlands – Ahold Delhaize on Monday kicked off a €1 billion ($1.13 billion) share buyback program. The program, first announced on November 15, is expected to be completed by the end of the year, the company said.

The stock buyback is part of what the company describes as an effort to maintain a balanced approach between funding growth in key channels and returning excess liquidity to shareholders, as part of a financial framework to support its Leading Together strategy. The purpose of the program is to reduce the capital of Ahold Delhaize, by cancelling all or part of the common shares acquired through the program.

The program will be executed within the limits of relevant laws and regulations, the existing authority granted at Ahold Delhaize’s 2021 annual general meeting of shareholders on April 14, 2021 and the authority (if granted) by the annual general meeting on April 13, 2022.

The share buyback program is executed in one or several tranches, according to the company. For each of them, an intermediary is mandated to execute the purchase of the shares at his own discretions during open and closed periods in compliance with the Market Abuse Regulation (“MAR”) and within pre-defined execution parameters. Shares are bought in the market and accumulated on the treasury share account until cancellation. Pursuant to the relevant statutory provisions, cancellation may not be effected earlier than two months after a resolution to cancel shares is adopted and publicly announced. Ahold Delhaize is committed to the share buyback program, but management will continue to monitor macroeconomic developments caused by COVID-19. The program is also subject to changes in corporate activities, such as material M&A activity.