The Delhaize Group concluded a partnership with the largest Rumanian food retailer Mega-Image. The Delhaize Group acquires initially a 51 %-shareholding in Mega-Image. The current owners and operators of Mega-Image will continue to manage the company, supported by the expertise and the international network of the Delhaize Group.
'In this partnership the Delhaize Group will continue to build on the success and strengths of Mega-Image', says Pierre-Olivier Beckers, Chief Executive Officer of the Delhaize Group.
In 1995, Mega-Image opened its first supermarket. At the end of 1999, the food retailer was operating 8 supermarkets, all located in Bucharest. The average sales area of its supermarkets is 1,100 m2. Mega?Image owns all its supermarkets and employed 500 people at the end of 1999. In 1999, Mega?Image's sales were
ROL 429.4 billion (BEF 1.1 billion or EUR 27.7 million; taxes excluded)
and it is profitable since its foundation.
'The partnership with Mega-Image fits perfectly with the strategic objective of the Delhaize Group to become one of the leading food retailers in Eastern and Central Europe', says Pierre-Olivier Beckers. 'Rumania is the second largest Eastern European country and its 23 million inhabitants present a large potential.'
The Delhaize Group has been in Eastern Europe since 1991, first in the Czech Republic and since 1998 in Slovakia. At the end of 1999, the Group's operating company Delvita operated 99 stores in the Czech Republic and 14 in Slovakia. In both countries Delvita is the second largest supermarket operator. In 1999, Delvita had sales of CZK 12.5 billion (BEF 13.8 billion or EUR 341 million) and employed 6,327 people.
The Delhaize Group is a food retailer headquartered in Belgium and listed on the Brussels Stock Exchange. Delhaize operates in 11 countries and had in 1999 sales of
BEF 577.4 billion (EUR 14.3 billion). In 1998, its net earnings amounted to
BEF 6 billion (EUR 149 million). The Delhaize Group was operating 2,112 stores at the end of 1999.
For any additional information you can contact:
Guy Elewaut,
Investor and Financial Press Relations Director,
Delhaize Group
Tel: +32 (0) 2 412 29 48 or +32 (0) 2 477 50 07 96
Brussels, February 28, 2000.