Two hedge funds have urged Dutch retailer Royal Ahold to divest its US businesses and focus on the European market. 


Paulson & Co and Centaurus Capital, which together hold 6.4% of Ahold’s issued ordinary shares, said in a statement they are jointly investigating options to create value for company stakeholders.


Royal Ahold director of media relations Walter Samuels told just-food that although Ahold has taken note of the statement, no further dialogue has taken place. 


“Ahold does not comment on market speculation,” he added


The hedge funds said that such a restructuring plan, selling stores including Giant Food, Stop & Shop and Tops Markets, could be worth in excess of EUR9.00 (US$11.47) per share to stakeholders. The US division represent just under half of Ahold’s growth.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

They said: “Paulson and Centaurus believe that the company needs drastic strategic action to deliver shareholder value. We believe keeping Ahold’s disparate retail and wholesale interests together diminishes shareholder value and limits the operating potential of the individual businesses.


“We further believe that one of the best strategic actions to take for the future prospects of the company and for enhancing shareholder value is to sell Ahold’s US businesses and become a pure play European retailer.”


Last week (10 August) Ahold posted second quarter sales of EUR10.48bn (US$13.46bn), an increase of 2.2% from EUR10.45bn reported a year earlier, with revenue particularly flat in the states.


However, Ahold reiterated to just-food that while sales remained unchanged, specific US units performed well, and the company was meeting targets and performing well in the country.