Delhaize Group And Ahold To Divest 86 U.S. Stores, Subject To FTC Clearance

(RTTNews) - Belgian international food retailer Delhaize Group (DEG) and Dutch supermarket chain Koninklijke Ahold NV (AHONY.PK, AHODF.PK) 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 Delhaize Group and Ahold merger, which the companies continue to expect before the end of July.

These store locations represent 4.1% of the Ahold and Delhaize Group companies' total combined U.S. store count and 3.2% of combined U.S. 2015 net sales.

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.

On June 24, 2015, Delhaize Group and Ahold announced their intention to merge. The shareholders' meetings of both companies approved the merger in March 2016. The Belgian Competition Authority granted its conditional approval for the merger in March 2016. FTC clearance is the remaining regulatory approval requirement for the Ahold and Delhaize Group merger.