The long rumored merger between Ahold (Giant Foods, Stop & Shop, Peapod) and Delhaize (Food Lion, Hannaford) is finally coming to pass as the two companies have agreed to a stock deal valued at $10.4 billion. Once completed, the combined company, to be known as Ahold Delhaize, will become the fifth largest grocer in the U.S.
Ahold will control 61 percent of the company while Delhaize will own the remaining shares. The merger is projected to save the companies more than $560 million annually three years after it is completed. The combined companies are also expected to benefit from the increased buying power that goes with operating a much larger concern. The two companies are looking to close the deal by the middle of next year.
"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 Dick Boer, CEO of Ahold, in a statement. "With extraordinary reach, diverse products and formats, and great people, we are bringing together two world-class organizations to deliver even more for the communities we serve."
