Belgian retailer sells Czech operations

Belgian international food retailer Delhaize is to sell Delvita, its Czech business, to German retailer Rewe for EUR 100 mln. Rewe operates Billa supermarkets and Penny Market discount stores in the Czech Republic.

'Some days ago, we announced that we had taken the difficult decision to sell our Czech activities after careful evaluation of their contribution to our portfolio and their future requirements. Today, we are satisfied to announce that we have reached an agreement with Rewe, as we believe the combination of Delvita and Billa will result in a strong competitor in the competitive Czech market and create continuity and opportunities for our people in the new organization,' said Pierre-Olivier Beckers, president and ceo of Delhaize. As part of the agreement Delvita 3,800 employees will be retained when Rewe takes over.

Delhaize began operations in the Czechoslovakian market in 1991 through the newly-founded subsidiary Delvita. By 2005, Delvita sold its Slovakian stores to Rewe. At the end of September 2006, Delvita had 95 stores, with recorded sales of EUR 282.2 mln and an operating loss of EUR 1.5 mln as at the end of 2005.