The Belgian Competition Authority (BCA) has officially cleared Delhaize’s acquisition of Delfood, the parent company of the Louis Delhaize retail chain. While the decision allows for a significant expansion of Delhaize’s footprint, it is contingent on a series of structural and contractual remedies designed to preserve local competition.
The transaction involves Delhaize taking over Delfood’s entire portfolio, which includes 322 stores and a substantial wholesale operation. During its review, the BCA identified “serious doubts” regarding the impact on local markets, specifically noting that in several neighborhoods and off-motorway petrol station locations, the merger would eliminate a primary competitor. Regulators feared this loss of competitive pressure would lead to higher prices and a decrease in service quality for everyday consumers.
To address these concerns, Delhaize has committed to divesting a specific number of proximity stores and petrol station shops to rival franchisors. These sell-offs are intended to ensure that shoppers in high-concentration areas still have access to a variety of retail banners. Furthermore, the BCA has mandated increased contractual freedom for independent stores that are currently supplied by Delhaize or Delfood. This “unshackling” of contracts is intended to allow these independent operators to compete more freely against Delhaize’s own corporate and franchise networks.
The agreement also imposes strict rules on future growth. Delhaize is now required to provide fair, reasonable, and non-discriminatory (FRAND) supply terms to non-franchise partners to prevent a “supply squeeze.” Additionally, any future attempts by Delhaize to integrate independent supply-contract stores into its own franchise network will require a new round of BCA authorization. This safeguard ensures that Delhaize cannot bypass the current ruling by slowly absorbing independent competitors over time.
This conditional approval effectively ends the long-standing rivalry between the two entities—both of which share the same 150-year-old family lineage—while maintaining the regulatory guardrails necessary for a balanced Belgian grocery market.