Notes to the
consolidated
financial statements
continued
4 Acquisitions
3 Significant accounting policies continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Key terms of the merger are:
The merger took place through a cross-border legal merger of Delhaize into Ahold;
Delhaize shareholders received 4.75 Ahold ordinary shares for each Delhaize ordinary share;
€1 billion was returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the merger; and
Ahold Delhaize is listed on the Amsterdam Stock Exchange and the Brussels Stock Exchange.
Ahold Delhaize merger
On July 23, 2016, Ahold and Delhaize announced the completion of their merger, which became effective on July 24, 2016. With this merger, Ahold
Delhaize has 21 local brands in 11 countries and employs 370,000 associates in over 6,500 grocery and specialty stores.
Amendments to IFRS 2, “Classification and Measurement of Share-based Payment Transactions,” were made to provide requirements on the
accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based
payment transactions with a net settlement feature for withholding tax obligations; and a modification to the terms and conditions of a
share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The amendments to IFRS 2 apply
prospectively for annual periods beginning on or after January 1, 2018. The Company has yet to assess the amendments’ full impact.
Amendments to IFRS 4, “Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts,” were made to give all companies that issue
insurance contracts the option to recognize in Other comprehensive income, rather than profit or loss, the volatility that could arise when IFRS 9
is applied before the new insurance contracts standard is issued; and companies whose activities are predominantly connected with insurance
an optional temporary exemption from applying IFRS 9 until 2021. The amendments to IFRS 4 apply prospectively for annual periods beginning
on or after January 1, 2018. Based on Ahold Delhaize’s current business model, the Company does not anticipate that the application of these
amendments to IFRS 4 will have a significant effect on the future consolidated financial statements.
There are no other IFRSs or IFRIC interpretations that have been issued but are not yet effective that are expected to have a material effect on the
future consolidated financial statements.
The merger has been accounted for as a business combination using the acquisition method of accounting under IFRS 3, with Ahold being
identified as the acquirer.
