Belgian international food retailer Delhaize Group today announced it invested EUR 14 mln in acquisitions in the fourth quarter of 2014, mainly in Romania, where it runs the Mega Image supermarket chain.
“During 2014, Delhaize Group entered into several agreements in Southeastern Europe and the U.S. that have resulted in the acquisition of businesses and were accounted for as business combinations. The total cash consideration transferred for these transactions was EUR 20 mln (EUR 14 mln in the fourth quarter primarily related to the acquisition of 20 stores from Angst Retail SRL in Romania) and the transactions resulted in an increase of goodwill of EUR 13 mln (EUR 9.0 mln in the fourth quarter),” Delhaize said in its 2014 financial report.
In August last year, Mega Image announced signing an agreement to take over 20 of the 22 stores operated by Angst, after the latter withdrew from a partnership with Carrefour. The transaction involved taking commercial spaces (including equipment, inventory, employees, clients, and commercial venues).
Subsequently, in November, the competition council approved the acquisition of only 19 Angst stores by Mega Image. In December, Mega Image reopened 18 Angst stores under its own brands, with the 19th unit being integrated as an extension of Mega Image Lacul Tei supermarket. Mega Image estimated annual revenues of EUR 21 mln for the 20 Angst stores with an area of between 90-750 sq. m each.
Also in the fourth quarter of 2014, the Romanian competition council determined that Mega Image, some of its suppliers and other food retailers active in Romania had in its view infringed Romanian competition law through setting up of anticompetitive vertical agreements during the period of 2005-2009. The competition council confirmed that the fine to be imposed on Mega Image amounts to 1.05 pct of the total turnover achieved in 2013. The group recognized a provision of EUR 5.0 mln in this respect.
The group’s revenues in southeastern Europe, including Romania, Serbia and Greece, rose 3.2 pct last year to EUR 3.08 bln, mainly as a result of expansion in Greece and Romania.
In Romania, the company had 410 stores at the end of 2014 compared with 296 a year earlier.
Source: propertyxpress.com