Fresh from sealing a planned merger deal with Belgian retailer Delhaize, Dutch retailer Ahold is now eyeing a takeover of US chain A&P.
A&P, in the brink of bankruptcy, was founded 150 years ago and just 50 years ago was the largest grocery retailer in the US. Now it has just 110 stores left but many of them are strategically located and cherry picking the network would help the new Ahold-Delhaize entity cement its market share and economies of scale in North America where the retail grocery industry is surprisingly fragmented.
Ahold owns the Stop & Shop and Giant chains the online grocery delivery company Peapod in the US; Delhaize Food Lion and Hannaford. The merger will see the four US chains come under the same parent, leading to supply chain efficiencies and increased buying power from suppliers.
Ahold’s rival Kroger is also considering a bid for A&P but the Dutch giant appears to have the early upper hand.