Is an Ahold-Delhaize Group marriage on the horizon?

ZAANDAM, the Netherlands — Both Ahold the Delhaize Group on Tuesday confirmed that they have entered into preliminary discussions to explore the opportunity of combining the two companies. However, neither company provided any details beyond the confirmation. 

 

"These discussions may or may not result in a future transaction," the two retailers stated. "The company will communicate material updates, if any, in accordance with regulatory requirements."

 

Ahold USA is currently the 14th largest retail pharmacy operation in the U.S. with $2.1 billion in pharmacy sales, according to DSN's Annual PoweRx report, which ranks the leading pharmacy operators in the country. Delhaize America, with $722 million in pharmacy sales, ranks No. 31. The combination would leapfrog Diplomat Pharmacy (currently No. 13 with $2.2 billion in pharmacy sales) and fall behind Target Pharmacy ($3.9 billion). 

 

Barring any store closures, the combined U.S. operations of Ahold and Delhaize would net 825 pharmacy locations. 

 

Ahold USA operates under three banners: Stop & Shop, Giant and Peapod. The company's Stop & Shop New England division fields 216 stores in Connecticut, Massachusetts and Rhode Island. Stop & Shop New York Metro operates 182 locations in Connecticut, New York and New Jersey. Giant Landover operates 170 locations in Deleware, Maryland, Virginia and Washington, D.C. And Giant Carlisle operates 200 stores in Maryland, Pennsylvania, Virginia and West Virginia. Peapod is the leading online grocery service in the United States and works in partnership with Stop & Shop, Giant Landover and Giant Carlisle.

 

Delhaize Americas operates under two banners: Food Lion and Hannaford. Hannaford operates 183 locations in Maine, Massachusetts, New Hampshire, New York and Vermont. Food Lion's 1,124 supermarkets are located in Deleware, Maryland, Georgia, Kentucky, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, D.C. and West Virginia.