Ahold takes over South American joint venture
Dutch giant takes control after collapse of partner
August 12 2002
Ahold has assumed full control of its South American joint venture Disco Ahold International Holdings.
The Netherlands-based supermarket operator announced last month that it would take over loans and buy all shares, after its local partner Velox Retail Holdings failed to meet loan payments commitments to banks. Like other retailers, Ahold has found its South American business severely hit by the economic crisis in the region.
Ahold said the $490m cost of the Velox shares and loans far exceeded the value of value of Velox’s one-third stake in the venture, and would generate a substantial charge in the second quarter of up to 450m euros.
Ahold now wholly owns 236 Disco supermarkets in Argentina, and has a 70 per cent stake in 117 Santa Isabel supermarkets in Chile, Peru and Paraguay.
