Purchase of Giant seen complete by Wednesday

Maryland Watch

October 24, 1998

Royal Ahold NV's acquisition of Landover-based Giant Food Inc. should be completed Wednesday, the company said yesterday.

The Netherlands' largest food retailer said yesterday that it had completed its tender offer for Giant's nonvoting common stock shares.

A total of 59.2 million shares, about 98.8 percent of the outstanding shares, have been accepted for a cash payment at $43.50 a share, the company said.

The next phase in the $2.7 billion acquisition is for Ahold to purchase the outstanding voting class shares from a subsidiary of Britain's second largest food retailer, J Sainsbury PLC.

The purchases should be completed by Wednesday, said Hans Gobes, a spokesman for Ahold in the Netherlands.

"At that point, Royal Ahold will become the 100 percent owner of Giant Food Inc.," Gobes said.

Giant is the Baltimore-Washington area's dominant supermarket chain. Ahold will merge it into its U.S. holding company, Ahold USA.

The acquisition will make Ahold the nation's fifth largest supermarket company, with projected annual sales of $35 billion.

Pub Date: 10/24/98

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