Two global retail giants could be about to merge to create one much greater company.
Supermarket group Ahold has agreed on principal to merge with Belgium’s Delhaize, which would create the sixth largest retailer in the US.
The two retailers had combined sales of £38.5 billion last year.
Stop &Shop, Giant, Hannaford and Food Lion are all retail chains owned by these companies.
The tie-up would mean 6,500 stores across the US and Europe owned by the new singular company.
Ahold shareholders would own 61 per cent of the new company, and the deal would involve one off costs of 350 million Euros, but it would hopefully save 500 million Euros by three years after the deal.
The deal, which is aimed to be completed by summer in 2016, will benefit both companies. However, it is still subject to the opinions of the shareholders, and regulatory bodies.
The companies, which were both founded before 1900, have a long history, and this will be a big step for them to take.
However, when compared to the warring stores in the UK at the moment, joining together looks like a good idea. Instead of battling things out in a price war which damage the profits of the big chains like Tesco and can harm suppliers, joining together could help to save the companies.
