Supermarket company Delhaize says it has received approval from Belgian competition authorities have approved its plan to acquire retail chain Cash Fresh, reports the Dow Jones news agency.
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“A few days ago, we received unconditional approval from the Belgian competition authority and we expect to be able to finalize this acquisition before the end of this quarter,” CEO Pierre-Oliver Beckers told shareholders at a meeting.
Cash Fresh has 43 supermarkets, most in northeast Belgium and annual sales of €210m. (US$263m)
“There is a strong geographic and strategic fit between Delhaize and Cash Fresh,” Beckers said. “The Delhaize stores have significantly higher sales per square meter, indicating that there is an opportunity for improvement of sales performance.”
Separately, Beckers repeated the grocer’s guidance for this year. Sales are expected to grow 4.5%, compared with 3.5% last year. In the US, comparable store sales are expected to grow between 0.5% and 1%. Operating profit growth will be in mid-single digits and net profit is expected to rise by 15% to 20%.
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By GlobalDataDelhaize does about three quarters of its business in the US, almost all on the East Coast. Beckers said he saw “opportunities for development in the Hudson Valley in New York State.”
