Leading international food retailers Delhaize Group and Royal Ahold are merging.  

The combined company is poised to become one of the largest supermarket operators in the U.S., valued at $29.11 billion based on closing share prices on June 23.

The combined company, which will be named Ahold Delhaize, will have a portfolio of local brands with more than 375,000 associates serving more than 50 million customers every week in the U.S. and Europe.

“We believe that the proposed merger of Ahold and Delhaize will create significant value for all our stakeholders,” says Frans Muller, chief executive officer, Delhaize. “Supported by our talented and committed associates, Ahold Delhaize aims to increase relevance in its local communities by improving the value proposition for its customers through assortment innovation and merchandising, a better shopping experience both in stores and online, investments in value, and new store growth. We look forward to working closely with the Ahold team to implement a smooth integration process and realize the targeted synergies.”

“The proposed merger with Delhaize is an exciting opportunity to create an even stronger and more innovative retail leader for our customers, associates and shareholders worldwide,” says Dick Boer, chief executive, Ahold. “With extraordinary reach, diverse products and formats, and great people, we are bringing together two world-class organizations to deliver even more for the communities we serve. Our companies share common values, proud histories rooted in family entrepreneurship, and businesses that complement each other well. We look forward to working together to reach new levels of service and success.”