SINT-JANS-MOLENBEEK - The Delhaize Group held a General Meeting yesterday to go over the company’s previous financial year, new challenges and strategies, and responsibilities and discharges of the retailer’s directors. In the meeting, Chairman of the Board Mats Jansson addressed the significant changes in the food retailing industry.
“Food Retail has been and will continue to be a highly competitive industry,” Jansson stated during the meeting, according to the company’s transcripts.
The main challenges he said that the company should address were:
- The growing importance of e-commerce with a rise of digital in food retail.
- The increasing attention that consumers place on “sustainability” issues.
- Consolidation in the food retailing industry.
Jansson commented that the changing consumer needs and demands prompt traditional grocers to continue investing in order to remain relevant. “To deal with these challenges, the food retail market, particularly in the United States, is experiencing an acceleration in consolidation as companies look to realize scale benefits in order to continue funding these investments.”
In regards to the company’s discussion with Ahold about a potential merger, Jansson particularly addressed his own side concerning J.P. Morgan and setting aside any possible conflicts his role with the bank could have with potentially merging with Ahold.
The Delhaize Chairman is also a member of the J.P. Morgan European Advisory Council, and has chosen to step down from the role despite not being able to confirm that J.P. Morgan is an advisor to Ahold.
“While I cannot confirm that J.P. Morgan is advisor to Ahold, I can confirm that my advisory role to J.P. Morgan does not create any conflict of interest given the scope of my consulting mission,” the Chairman reportedly stated in the meeting. “Nevertheless, in light of Delhaize Group’s discussions with Ahold and in order to avoid any future possibility of the appearance of any potential conflict of interest, I have decided to temporarily suspend my consultancy role at J.P. Morgan. I believe this is the highest integrity decision I can take with respect to this matter.”
As we previously reported, the two companies confirmed that they had begun discussions of a possible merger agreement, but have not since disclosed anything further on the matter.
“As you have all read, we have confirmed that Delhaize Group and Royal Ahold N.V. have entered into preliminary discussions to explore the opportunity of combining our two companies,” Jansson reiterated during the meeting. “At this point, I cannot say whether these discussions will or will not result in a future transaction. However, I will commit to you to communicate material updates, if any, in accordance with regulatory requirements.”
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