By Maarten van Tartwijk
Dutch food retailer Koninklijke Ahold NV and Belgium's Delhaize
Group confirmed Tuesday they are in talks about a possible merger
that could create one of Europe's biggest supermarket
operators.
However, the companies cautioned that the talks may not result
in any deal.
No financial details of the potential deal were disclosed,
however, based on Friday's closing share prices--before renewed
speculation about a deal surfaced--the merged company would be
valued at EUR22.91 billion ($25.79 billion.)
A tie-up between the two food retailers has been the subject of
speculation for years. The companies reportedly held negotiations
about a merger in 2006.
A combination would create one of Europe's largest food
retailers with around EUR54 billion ($60.6 billion) in annual
sales. It would also create a strong player along the east coast of
the U.S., where both companies generate about 60% of their total
revenue.
Ian Walker contributed to this article.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
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