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Ahold Delhaize merger deal goes through

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NEW YORK — Delhaize Group and Royal Ahold completed their merger, as expected, on July 23.

The Europe-based food and drug retailers said Saturday that the $29 billion deal has received regulatory clearance from the U.S. Federal Trade Commission, and Delhaize Group chief executive officer Frans Muller and Ahold CEO Dick Boer have signed of the merger deed.

The companies had said on Thursday that they expected to wrap up the merger deal over the weekend.

The merger takes effect on July 24, the companies said. Shares in the combined company, Ahold Delhaize, begin trading on Euronext Amsterdam and Euronext Brussels under ticker symbol AD on July 25. Ahold Delhaize American Depositary Receipts (ADRs) will trade over-the-counter in the United States and be quoted on the OTCQX International marketplace.

Stockholders will receive 4.75 Ahold Delhaize ordinary shares for each Delhaize ordinary share.

“Completing this merger today is an exciting and historic moment,” Boer said in a statement. “I would like to thank all associates for their dedication and hard work. With our new leadership team, we look forward to continuing to deliver for our customers and other stakeholders.”

Boer will become Ahold Delhaize CEO, while Muller is slated to serve as deputy CEO and chief integration officer of the combined company.

“We are pleased to complete our merger with Ahold today,” Muller stated. “I would like to thank our associates for all their work and dedication. The moment to merge has never been more right, and we are confident that we will deliver even more for customers, communities and investors.”

Ahold Delhaize will have more than 6,500 stores internationally and roughly 2,000 stores in the United States.

“Today marks the successful completion of this cross-border merger, bringing together two great food retail companies,” commented Jan Hommen, chairman of the Ahold Supervisory Board. “Ahold Delhaize is ready for a strong start, building on its strong foundation, heritage and complementary businesses.”

Both retailers generate most of their sales through their U.S. supermarket divisions. Overall in the U.S., Ahold Delhaize will have sales of around $37 billion, making it one of the nation’s largest food and pharmacy retailers. The merged company would be the 11th largest retail pharmacy operator by location, with more than 700 pharmacies.

Last week, the companies announced that Delhaize America and Ahold USA reached agreements with buyers to divest 86 stores in connection with their pending merger, which was announced in June 2015. Delhaize and Ahold said the stores being sold account for 4.1% of their total combined U.S. store count and 3.2% of their combined U.S. 2015 net sales.

Ahold USA’s grocery chains include Stop & Shop, Giant Food, Giant Food Stores and Martin’s Food Market, while Delhaize America is led by its Food Lion and Hannaford supermarket chains.

“Today is an historic day, as we are now really bringing together these two great companies, creating an even stronger international food retailer,” stated Mats Jansson, chairman of Delhaize Group. “We are completing this international transaction with great momentum and a high level of readiness.”


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