- All purchase agreements are subject to FTC approval and clearance by the FTC of the Ahold and Delhaize Group merger
- All divested stores to be sold to well established supermarket retailers
- Divestments represent 4.1% of the Ahold and Delhaize companies` total combined U.S. store count and 3.2% of the Ahold and Delhaize companies` combined U.S. 2015 net sales
- The companies continue to expect to complete the merger before the end of July
Zaandam, the Netherlands - Ahold and Delhaize Group today announced that their United States subsidiaries have reached agreements with buyers to divest a total of 86 stores in a limited number of locations in which the companies` U.S. subsidiaries both operate. These divestments are being made in connection with the United States Federal Trade Commission`s (FTC) pending review of the proposed merger between the two companies. The divested stores are being sold to well established supermarket operators. All of the purchase agreements are subject to FTC approval. The agreements are also subject to FTC clearance and formal completion of the Ahold and Delhaize Group merger, which the companies continue to expect before the end of July. Ahold CEO Dick Boer said: "The combination of Ahold and Delhaize Group is a unique opportunity to deliver even more for customers, associates and local communities. Together, Ahold and Delhaize Group have been working hard to resolve the competition concerns raised by the FTC, and we are pleased to have found strong, well established buyers for the stores we are required to divest. We deeply appreciate the long-time support of our customers and associates in these locations and are confident that the new owners will continue to serve local communities well." The buyers of the 86 stores being divested are:
- New Albertson`s, Inc. (part of Albertsons Companies based in Idaho) purchasing 1 Giant Food store in Salisbury, Maryland;
- Big Y (based in Massachusetts), purchasing 8 Hannaford stores in eastern Massachusetts;
- Publix (based in Florida), purchasing 10 MARTIN`S stores in Richmond, Virginia;
- Saubel`s Markets (based in Pennsylvania) purchasing 1 Food Lion store in York, Pennsylvania;
- Supervalu (based in Minnesota), purchasing 22 Food Lion stores in Maryland, Pennsylvania, Virginia and West Virginia;
- Tops Markets (based in New York), purchasing 1 Stop & Shop store in Massachusetts as well as 3 Stop & Shop stores and 2 Hannaford stores in New York; and
- Weis Markets (based in Pennsylvania), purchasing 38 Food Lion stores in Delaware, Maryland and Virginia.
The divested stores are expected to be converted by the buyers to their new banners and re-opened as supermarkets after any remodeling planned by the buyers. A full list of the locations being sold by both companies as part of this process is attached as an annex to this press release. On June 24, 2015, Ahold and Delhaize announced their intention to merge, creating an international retailer with a portfolio of strong, trusted local brands, more than 6,500 stores and over 375,000 associates. These brands serve more than 50 million customers every week in Europe and the United States. FTC clearance is the remaining regulatory approval requirement for the Ahold and Delhaize Group merger. In March of this year, the Belgian Competition Authority (BCA) granted its conditional approval for the merger. Also in March, shareholders of both companies approved the merger with an overwhelming majority. Please visit www.ahold.com, www.delhaizegroup.com or www.adcombined.com for more information. 2016/15 160714_PR US divestments_ENG
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ahold via GlobeNewswire