S&P puts Delhaize on positive watch

Standard & Poor’s said it placed Delhaize Group SA’s BBB- long-term and A-3 short-term corporate credit ratings on CreditWatch positive.

The agency also placed the BBB- ratings on the group’s senior unsecured debt instruments on positive watch.

The CreditWatch follows news that Delhaize will merge with its competitor, Koninklikje Ahold NV, S&P said.

Delhaize shareholders will receive 4.75 of Ahold’s shares for each one of their shares, the agency said.

The transaction could strengthen Delhaize’s satisfactory business risk profile, S&P said.

The combined entity would generate revenues of about €55 billion in more than 6,500 stores with strong positions in the United States, the agency said.

The new company also will benefit from purchasing power, wider range of product offerings and higher number of pick-up points, S&P said.

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