Dutch-Belgian multinational retail and wholesale holding company Ahold Delhaize announced the Romanian Competition Council has approved under conditions the intended acquisition of 100% of Romanian grocery retailer Profi Rom Food SRL (Profi) from CEE private equity firm MidEuropa. The parties shall now proceed to closing which is planned for early January 2025.
Claude Sarrailh, CEO Ahold Delhaize Europe & Indonesia stated: “I am pleased with this confirmation of the regulatory authorities and we look forward to welcoming the Profi team to our family of great local brands, as of closing. Romania is an attractive market experiencing continued growth in public wealth and spending power, driven by strong economic fundamentals. Our teams are prepared for the next steps with the aim of a smooth transition for the Profi team after closing.”
Claude Sarrailh, CEO Ahold Delhaize Europe & Indonesia
Romanian Competition Council president Bogdan Chiritoiu said in a separate statement issued by the watchdog on Wednesday (Dec. 4): “This is the largest transaction that we have instrumented in the grocery retail market and we have imposed measures that are unprecedented on a national level, but which are inspired by European practice.”
Ahold Delhaize has to fulfill a series of structural and behavioral commitments to address competition concerns identified both in the relationship with suppliers and in the local retail market for consumer products, mainly food, through stores, the Authority said.
Ahold Delhaize also has to divest 87 stores in 44 localities where Mega Image’s and Profi’s activities overlap and could lead to reduced consumer choice, thus removing any possible concerns of the competition authority.
Profi, which was acquired by MidEuropa in 2017, is a leading traditional grocery retailer in Romania, operating 1,751 stores in the country. It is known for its strong assortment and value for customers. In the twelve months ending June 2024, the company generated €2.7 billion in sales.
The acquisition will increase Ahold Delhaize’s existing Romanian business, which operates under the Mega Image brand and has 977 stores, predominantly in urban areas. The combination will complement and expand Ahold Delhaize’s existing Romanian footprint to better serve both urban and rural areas. The strong format fit and complementary customer propositions between the Profi and Mega Image brands, will allow them to better serve the Romanian consumer, driving both sales growth and profitability.
The intention to acquire Profi was announced on 30 October 2023. MidEuropa had said the value of the transaction was about 1.3 billion euro and called it the largest grocery deal ever in continental Europe involving private equity and the largest ever grocery deal in Central and Eastern Europe (CEE).
Last month, Ahold Delhaize announced a €1-billion share buyback programme, to run during 2025 and reiterated its outlook for the full year 2024, after third-quarter results beat expectations.
Ahold Delhaize Group at a Glance
Founded: 2016 Headquarters: Zaandam, Netherlands Number of Locations: 7,910 (2024) Employees: 414,000
