Ahold Delhaize merger officially completed

2016 - 07 - 15 - Ahold + Delhaize

In June 2015 I told you that Ahold and Delhaize announced their intention to combine their businesses through a merger of equals. And last week I wrote that Ahold will pay €1.21411 per share to shareholders of record on July 15. This will be done in the form of a super dividend. This super dividend already has been paid on July 21, 2016. On this super dividend no taxes will be hold 😉

Furthermore the reverse stock split will be executed on July 18, 2016. The split has a ratio of 17:16. This means that for every 17 old Ahold stocks, you will get 16 new Royal Ahold Delhaize stocks. In this reverse stock split no fraction will be issued. So if you own more stocks than a multiple of 17, the fractions will be paid in cash. Ahold shareholders will own 61% of the new company.

When I wrote the post last week the merger wasn’t official yet, because the US regulator FTC hadn’t approved the merger yet. Today the merger is official with the approval of the FTC. The two companies sold 86 US supermarkets and got the green light!

The merger creates a company which operates more than 6,500 stores in Europe and the United States, with approximately 375,000 employees and more than 50 million customers. A great company in all ways.

Ahold takes over Delhaize in order to grow in the US market. The Dutch supermarket group has strong positions on the east coast of the USA and can fill in the “gaps” with the Belgium stores. According to analyst, the new company will be the largest consumer discretionary everywhere on the US East coast.

The shares, which will be called Royal Ahold Delhaize, will start trading as of Monday 25th of July.

For further information on the merger, take a look at the special website of Royal Ahold Delhaize.


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