4. Business Combinations and Acquisition of Non-controlling Interests
4.1 Business Combinations
Acquisitions during 2014
Acquisitions during 2013
Acquisitions during 2012
4.2 Acquisitions of Non-controlling Interests
Acquisitions during 2014 and 2013
Acquisitions during 2012
Delhaize Group Annual Report 2014 97
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 €20 million and the transactions resulted in an increase of goodwill of €13 million.
During 2013, Delhaize Group entered into several agreements in Southeastern Europe that have resulted in the acquisition of
businesses and were accounted for as business combinations. The total consideration transferred during the year for these
transactions was €9 million and resulted in an increase of goodwill of €3 million.
In addition, Delhaize Group reached an agreement with the former owner of Delta Maxi to settle all remaining indemnification
assets and received €22 million in cash.
During 2012, Delhaize Group entered into several agreements in Belgium and Romania that have resulted in the acquisition of
businesses and were accounted for as business combinations. The total consideration transferred during the year for these
transactions was €5 million and resulted in an increase of goodwill of €3 million.
During 2014 and 2013, Delhaize Group did not acquire additional non-controlling interests.
In 2013, the Group launched a tender offer to acquire 16% non-controlling interests in C-Market (Serbian subsidiary), held by the
Serbian Privatization Agency, at a price of €300 per share (representing approximately €10 million). The Serbian Privatization
Agency suspended twice the privatization procedures of C-Market, due to a probe into the entity's earlier privatization. Neither
the Group nor the current privatization process are target of these investigations. Delhaize Group withdrew its offer after it
expired later that year. A new privatization process was launched in the second part of 2014, but has not been open for tendering
at year-end. Delhaize Group will consider its participation in the process in due time. Consequently, Delhaize Group continues to
own 75.5% of C-Market.
In 2012, the minority shareholder of Ela d.o.o. Kotor (Montenegrin subsidiary) irrevocably and unconditionally exercised its put
option selling to Delhaize Group its share of 49% in the subsidiary. The Group recognized, as part of the purchase price
allocation, (i) a liability of approximately €13 million in connection with the put option, representing its best estimate of the
expected cash outflow, and (ii) an indemnification asset of approximately €6 million towards the former owner of Delta Maxi. The
Group reclassified the remaining non-controlling interest into retained earnings and recognized the subsequent immaterial
changes in value of the liability and the indemnification asset in profit or loss.
During 2012, Delhaize Group acquired additional non-controlling interests for a total amount of €10 million, including transaction
costs, recognized in equity, mainly relating to Serbian subsidiaries.
