European deal creates U.S. grocery giant

NEW YORK (AP) — The owner of Stop & Shop and Giant will tie up with the parent company of Food Lion, creating a $29 billion grocer that will be in a stronger position to compete with Wal-Mart and other discount retailers.

The deal, which would create the fourth largest grocer in the U.S., is the latest in a series of buyouts and mergers that has major players bulking up to carve out market share in an industry that has grown intensely competitive.

The latest tie up is between the Dutch retailer Royal Ahold NV and its rival, Belgium’s Delhaize Group. Yet the combined company, to be called Ahold Delhaize, will generate about 61 percent of its revenue in the U.S.

Together, Ahold Delhaize, will have more than 6,500 stores around the world and it would cater to 50 million customers a week in the U.S. and Europe.

 

Copyright Associated Press

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