“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 EUR20 million (EUR14 million 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 EUR13 million (EUR9 million in the fourth quarter),” Delhaize said in a statement Thursday.
Early August 2014, Mega Image said it had reached an agreement for the acquisition of 20 out of 22 stores operated by Angst, which was pending the antitrust watchdog approval.
The Competition Council cleared the deal in November, under certain conditions and allowed the takeover of 19 stores.
By December 2014, Mega Image reopened 18 Angst stores under its own brand. A 19th store was integrated as an extension of an existing Mega Image supermarket. The company said it expects the 20 units to generate revenue of EUR21 million per year.
According to the statement, the company also booked EUR5 million provisions for the fine received from the Romanian Competition Council after the decision that Mega Image, some of its suppliers and other food retailers active in Romania infringed the Competition Law through the alleged setting up of anticompetitive vertical agreements during the period of 2005-2009.
“Although the fully motivated decision has not been provided to Mega Image so far, the Competition Plenum confirmed that the fine to be imposed on Mega Image amounts to 1.05% of the total turnover achieved in 2013. The Group recognized a provision of EUR5 million in this respect. Mega Image has one month from the notification of the fully motivated decision to lodge an appeal against the decision and to claim for a suspension of the payment,” the company said.
In 2013, Mega Image reported a net profit of RON55.1 million (EUR12.5 million), up 18% on the year.
In 2014, the sales increase of retailer Mega Image supported Delhaize’s 3.2% revenue growth in South-Eastern Europe, to EUR3.1 billion. Romania is part of Delhaize’s South-Eastern Europe region, jointly with Greece and Serbia.
Mega Image was the most dynamic retail network in Romania and in Delhaize group in terms of store openings in 2014. Thus, over 60% of the 180 new units announced by Delhaize were opened in Romania. Most of the new units were opened in capital Bucharest, where the company owns over 80% of its stores. The retailer said its market share in Bucharest exceeds 21%.
Founded in 1995, Mega Image is the largest supermarket chain in Romania, with 411 stores under the brands Mega Image (200), Shop&Go (209) and AB COOL FOOD (1) and Mega Drive (1).
Angst group was established in 1990 and owns three plants, in Buftea, Sinaia, and Videle. Angst is 60% controlled by Sorin Minea, while Liudmila Minea and Bernadette Martha Maria Wyrsch-Angst own a 20% stake each.