Ahold Delhaize's Acquisition of Profi Clears Competition Hurdle
Deal News | Dec 04, 2024 | EIN
The Romanian Competition Council has conditionally approved the acquisition of 100% of Profi by Ahold Delhaize, a Dutch-Belgian grocery conglomerate, from MidEuropa. This deal is expected to close in January 2025, following the fulfillment of regulatory conditions aimed at maintaining market competition. As part of these conditions, Ahold Delhaize will divest 87 Mega Image stores in areas where there is overlap with Profi, ensuring these stores remain open but under different ownership. Both Profi and Mega Image are committed to supporting over 600 small and medium-sized suppliers by implementing transparent supplier policies until 2025. The Romanian Competition Council emphasizes the importance of strong market competition to prevent price hikes and protect supplier and consumer interests. Profi, Romania's largest private employer, stands to gain global expertise from the deal, complementing Mega Image's existing presence in the country. With positive remarks from Ahold Delhaize's CEO, the transition promises to enhance operations without disrupting market dynamics.
Sectors
- Food Retail
- Regulatory Affairs
Geography
- Romania – The deal and regulatory approval involve companies operating primarily in Romania, affecting the local retail market.
- European Union – Ahold Delhaize, being a Dutch-Belgian company, operates within the European Union, highlighting EU-wide competitive practices influencing the acquisition.
Industry
- Food Retail – The article pertains to the food retail industry, where Ahold Delhaize is acquiring Romanian grocery retailer Profi to strengthen its market presence.
- Regulatory Affairs – Focuses on regulatory approvals and conditions set by the Romanian Competition Council to ensure competition and market balance in the food retail sector.
Financials
- EUR 2.7 billion – Profi's sales in the twelve months ending June 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ahold Delhaize | Bidding Company | Company | A Dutch-Belgian grocery conglomerate acquiring Profi to expand its market in Romania. |
| Profi | Target Company | Company | Romania's largest private employer and grocery retailer, involved in the acquisition by Ahold Delhaize. |
| MidEuropa | Selling Company | Company | The current owner of Profi selling its shares to Ahold Delhaize. |
| Romanian Competition Council | Regulatory Body | Government | The Romanian authority that approved the acquisition under conditions to maintain market competition. |
| Mega Image | Other Company | Company | Ahold Delhaize's existing Romanian brand affected by the competition council's divestment conditions. |