Dutch-based supermarkets operator Ahold has reached a deal to buy Belgian peer Delhaize, the companies said today.
The merger will create a top 20 global retailer with strong positions in Europe and the US.
In a joint statement, the companies said Ahold would have a 61% stake in the new company, which will have €54.1 billion in sales, over 6,500 stores worldwide and complementary operations in the US and Benelux.
Ahold is operator of Stop&Shop and Giant in the US, while Delhaize owns the Food Lion chain.
Ahold said it would pay 4.75 shares for every Delhaize share, valuing the offer at about €90 for every Delhaize share.
The merged entity, which will be headed by Ahold chief executive Dick Boer, would gain €500m in synergies annually from combining operations, to be reached by the third year after the merger, the companies said.
The announcement caps years of speculation about a tie-up between the two regional giants.
Previous talks have failed, but analysts say the companies' combined buying power could help strengthen their position against booming discount retailers.
"Our companies share common values, proud histories rooted in family entrepreneurship, and businesses that complement each other well," Boer said.
Delhaize's chairman Mats Janssen will chair Ahold Delhaize, while Delhaize chief executive Frans Mulller will become deputy CEO and chief integration officer.
