Ahold to buy back two billion euro in shares

Ahold to buy back two billion euro in shares

Dutch retail group Ahold has announced it would purchase its own shares for some two billion euro. The distributor is sitting on a pile of money, after selling Scandinavian group ICA.

Extra purchase thanks to Scandinavian divestment

Earlier this year Ahold sold 60% of its participation in Scandinavian sector colleague ICA to co-owner Hakon Invest for 2.5 billion euro. The sales had been taken into account: in 2012 Ahold had already decided to leave ICA when it could not get complete control of the chain.

 

A number of analysts already expected Ahold to use that money to buy its own shares. A drop of the number of shares in circulation causes future profits to be divided among less titles, causing the other shares to rise in value. At the same time however chances for a major takeover diminish significantly. Some analysts believed Ahold was planning on taking over American retailer Harris Teeter, but that has become unlikely now.

 

Most analysts expected Ahold to reserve 1 to 1.8 billion euro for the purchase. In February of this year Ahold already announced a buyback of its own shares for about 500 million euro spread across about 12 months. In the end the number is even higher: before the end of 2014 Ahold will buy back two billion euro of its own shares. This would mean that the company would be buying about a sixth of its own value.

Questions or comments? Please feel free to contact the editors


Hudson’s Bay suffers delay in Dutch remodeling operation

21/08/2017

Canadian department store chain Hudson’s Bay is lagging behind with its store renovations in the Netherlands. It wants to open ten stores this year, but the former V&D store locations are running into several remodeling issues.

Facebook launches its Marketplace in Europe

16/08/2017

In October 2016, Facebook launched a marketplace for used items in several countries, including the United Kingdom and the United States. That marketplace is now also coming to Belgium, the Netherlands and fifteen other European countries.

AS Adventure acquires German McTrek

14/08/2017

Belgian outdoor chain AS Adventure has acquired its German competitor McTrek. The acquisition opens up the largest European outdoor market for the Belgians, thanks to McTrek’s 39 stores and web shop.

American department store chains continue to struggle

11/08/2017

Several American department store chains continue to underperform. Both Macy’s and Kohl’s experienced turnover slumps compared to the previous year, even though they both managed to beat analysts’ expectations.

Amazon wants to compete with Ticketmaster

11/08/2017

Amazon is in talks with American event location owners to see whether it could sell tickets for their events on its web shop.

Record turnover for Henkel

10/08/2017

German Henkel has had a record second quarter, when turnover reached nearly 5.1 billion euro. For the first time ever, its six-month turnover surpassed the 10 billion euro milestone, thanks to its acquisition of laundry detergent company Sun.

Back to top