Hundreds of American suppliers could benefit from the $29 million merger of Ahold and Delhaize, but while existing American grocers now have a new competitor to worry about.
It will be one of the largest grocery corporations in the U.S.
Dutch grocery chain Royal Ahold and Belgian grocery chain Delhaize have agreed to a merger. Based on the companies’ stock prices from closing time Tuesday, the combined corporation would have a market capitalization of $29.1 billion.
The two European retailers confirmed merger talks back in May, but now it is official. And this merger is an effort to be stronger in the States, where competition has been stiff. Hans D’Haese, an analyst with Degroof, told The Wall Street Journal the deal is a “defensive move.”
Ahold and Delhaize may not be household names to all American shoppers, but both of them make more than half their revenues in the U.S. Ahold, based in the Netherlands, operates the Stop & Shop and Giant chains, and online grocery store Peapod, while Belgium’s Delhaize owns the Food Lion and Hannaford banners, the Journal said.
Read more: Time