The $11 billion purchase of Belgium-based supermarket operator Delhaize Group by Netherlands-based grocery conglomerate Ahold is coming closer.
The two companies both announced they expect the deal, approved by the shareholders of both companies in March 2016, to go through before the end of July 2016, subject to regulatory approval by the U.S. Federal Trade Commission (FTC).
The merger will create one of the largest food retailers on the U.S. East Coast, as Ahold operates Stop & Shop and Delhaize operates Hannaford and Food Lion. The combined company, Ahold Delhaize, will bring together a portfolio of more than 6,500 stores and more than 375,000 associates serving more than 50 million customers each week across the U.S. and Europe.
In advance of the merger, Ahold expects to execute a capital repayment and reverse stock split worth a total of $1.1 billion after the close of New York Stock Exchange operating hours on Friday, July 15. The companies first announced their intent to merge June 24, 2015.