Global grocers merging to create mega-corporation

The two grocery brands will merge to create one of the world's largest retailers

A long-expected deal between retailers Ahold and Delhaize has been confirmed, creating one of the world's largest grocery companies

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Dutch grocery chain Ahold NV and Belgian peer Delhaize Group have agreed a merger deal, making their respective US operation on of the largest outlets in the USA. The Wall Street Journal reports that the deal, said to be worth up to €26.07bn ($29.11 billion), according to their closing share prices.

The new firm, Ahold Delhaize, will have more than 6,500 stores across Europe and the USA, with 375,000 workers serving more than 50m customers a week. The companies’ US operation accounts for 60% of their sales, with Ahold holding the Stop & Shop, Giant and Peapod brands and Delhaize owning the Food Lion and Hannaford lines.

WSJ reports that the deal, expected to save the companies up to €500m in the coming years, comes at a time when US retailers are under ever-increasing pressure from discount retailers and also from consumers’ decision to shop online. Caught in the middle of this economic and social shift, Ahold and Delhaize have been considering the merger since 2006. The new company will be one of the biggest retailers in the world, with sales of around €54bn.

Share prices for both companies went up earlier this month when news of the long-gestating merger was reported in local media.

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