According to the media Het Financial Dagblad, Ahold - the Dutch food retailer - and Delhaize Belgian have removed some obstacles that existed before a probable merger.
Ahold would allow a Brussels location for common headquarters and would agree to a chief executive picked by the Belgian company and mention the sources familiar with the process.
Dutch newspapers and the Financial Times reported last week, Ahold, the world's fourth-biggest foodservice group and food retail by sales to be taking into consideration a full or partial merger with the smaller Delhaize in order to defend itself against shareholder activism.
Delhaize would also provide a chief executive for the U.S. unit, while Ahold would select the chief financial officer and head of the European division. According to the official, in negotiations last week, the parties outlined plans for a combined company that would create a holding company with a European and a U.S. sub holding.
Industry and financial sources have confirmed tentative contact had likely been made, triggered by the efforts of hedge funds Paulson and Centaurus to whip up shareholder support to separate Ahold's flagging U.S. operations from the rest of the group. Both the companies generate most of their sales in the United States.
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