Zaandam, the Netherlands, 2016-Jul-15 — /EPR Retail News/ — 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.
This press release includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those included in such statements. These forward-looking statements include, but are not limited to, statements as to the divestment of stores and the conversion of the relevant stores to new banners, subject to FTC approval and the intention of Ahold and Delhaize Group to complete their merger before the end of July, subject to FTC clearance. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ahold’s ability to control or estimate precisely, such as discussed in Ahold’s public filings and other disclosures. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Koninklijke Ahold N.V. does not assume any obligation to update any public information or forward-looking statements in this release to reflect subsequent events or circumstances, except as may be required by law. Outside the Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of “Royal Ahold” or simply “Ahold.”
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