Dutch retail giant Ahold has announced that it has reached a settlement with the Dutch Public Prosecutor with regard to the investigation into side letters.

Under the terms of the settlement Ahold will pay an amount of €8m (US$9.9m), and in turn, the Dutch Public Prosecutor will not institute proceedings against the company.

"We firmly believe that this settlement is the best solution for all our stakeholders. This will prevent a lengthy, costly and time-consuming legal procedure and another investigation into the past can be concluded," said Peter Wakkie, the company's chief corporate governance counsel.

Ahold had been accused of the improper use of side letters and the improper consolidation of subsidiaries and joint ventures, reported Reuters.