"Frans Muller will become CEO if Ahold and Delhaize merge"

"Frans Muller will become CEO if Ahold and Delhaize merge"

If Delhaize and Ahold merge, Belgian prices would be lowered and Dutch quality would grow, according to Rabobank. Petercam on the other hand claims Frans Muller will become the CEO of the resulting company, while Dick Boer will become chairman.

Lower prices, better quality

"The consumer will have to pay less for a better shopping experience", Belgian paper De Standaard writes. It is the conclusion of an analyst report from Dutch bank Rabobank the paper looked into. 

 

"They key will be the combination of Ahold's better purchase agreements and Delhaize's quality, Rabo believes. Similarly to Delhaize in Belgium, Albert Heijn has a reputation in the Netherlands of being a pricey supermarket. That point of view should improve when Delhaize products are added to the product range", the paper summarized the report. "Belgian prices would drop, because Albert Heijn can buy 10 % cheaper in the Netherlands than Delhaize can in Belgium."

 

Ahold supplies its Belgian Albert Heijn stores from Tilburg, in the Netherlands, and Rabobank believes it should be able to expand that operation to do similarly for Delhaize. The Netherlands also has a different approach, with more "flexible labour contracts" and "lower wages" because of "more student jobs", while also taking advantage of Albert Heijn's "more efficient logistics". According to Rabobank, the newly-formed company could theoretically even evade Belgium's prohibition to sell below purchase price, while there are areas of synergy for its private labels as well.

 

"It is remarkable that Rabobank estimates Delhaize's purchase advantages to be worth a mere 120 million euro, which does not even reach 0.3 % of Delhaize Belgium's turnover", De Standaard writes. "That improvement would not suffice to return to Delhaize Belgium's profitability from 2011. It also remains to be seen how much of these merger advantages will go straight to the stockholders."

 

"Delhaize will supply the CEO, Ahold the chairman"

Investment firm Petercam has also looked into the possible merger. Its analysts mainly focused on how the company would be structured at management level. It believes Frans Muller, the Dutch CEO of Delhaize since 2013, would become the overall CEO, while Ahold's current CEO (Dick Boer) would become chairman of the board.

 

We might know before the end of the month whether that prediction holds true, because several sources close to the talks have stated the merger could be finalized by then.

Questions or comments? Please feel free to contact the editors


Richemont wants to gain full control over Yoox Net-a-Porter

22/01/2018

Swiss luxury group Richemont proposed to obtain a majority stake in online retailer Yoox Net-a-Porter. The move is a way to implement its online strategy faster.

Decent profit for The Sting in fiscal year 2016

22/01/2018

Fashion chain The Sting generated a profit once more in 2016, after it had to deal with a more than 5 million euro loss in the year before. Affiliate brand Costes also generated a profit in its fiscal year 2016.

Lower turnover and new CEO for Geox

19/01/2018

Italian shoe brand Geox’ turnover dropped slightly in the past fiscal year. It also replaced former CEO Gregorio Borgo with Matteo Mascazzini, who came from Italian fashion brand Gucci.

Slower growth for Primark

18/01/2018

Irish fashion chain Primark has seen its first quarter turnover grow 7 % at level exchange rates and 9 % taking the fluctuations into account. Analysts however had expected faster growth.

Zalando's profit is slightly below expectations

17/01/2018

German fashion web shop Zalando has grown nearly a quarter in the past fiscal year and its company profit also nearly grew 5 %, although the latter was slightly below its own expectations.

Record turnover for Yoox Net-a-Porter in 2017

16/01/2018

Online retailer Yoox Net-a-Porter (YNAP) achieved a record turnover in 2017, surpassing two billion euro. That is a growth of more than 10 % compared to the year before, when it just missed that milestone.

Back to top