Supermarket chains Ahold, Delhaize to merge

Dutch international retailer Ahold and its Belgian counterpart Delhaize on Wednesday officially announced they have an agreement to combine their businesses through a merger.

The merger between the two supermarket chains had been discussed since May this year.

Although both parties call it a merger of equals the deal can also be called a takeover by Ahold, because the shareholders of the Dutch company will own 61 percent of the combined company's equity and Delhaize shareholders will own 39 percent of the combined company's equity.

The combination, named Ahold Delhaize, will create a complementary base of more than 6,500 stores with 375,000 associates and will be able to serve over 50 million customers per week in the United States and in Europe, according to a combined statement.

The combination creates one of the largest retailers in Europe and the United States with a total net sales of 54.1 billion euros (60.7 billion U.S. dollars) in 2014, adjusted EBITDA of 3.5 billion euros, net income from continued operations of 1.0 billion euros and free cash flow of 1.8 billion in 2014.

Dick Boer, CEO of Ahold, will become CEO of the combined company, Frans Muller, CEO of Delhaize Group, will become Deputy CEO and Chief Integration Officer. "The proposed merger with Delhaize is an exciting opportunity to create an even stronger and more innovative retail leader for our customers, associates and shareholders worldwide," said Boer in a press release.

The transaction is expected to be completed mid-2016, following regulatory clearances, associated consultation procedures and shareholder approval. Endit