Delhaize Group announced today that it will sell its Czech business Delvita to German retailer Rewe. Rewe pays €100mn for 95 Delvita stores which recorded in September 2006 sales of €282.2mn and an operating loss of €1.5mn. In 2005 Delhaize already sold its Slovakian operation to Rewe and this deal includes the rest of Delhaize’s operation in Central Europe, where the Belgians have been active since 1991.

In the Czech Republic Rewe operates – according to PlanetRetail – 80 Billa supermarkets and 170 Penny Market discount stores and total 2006 sales are some €840mn. “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 organisation”, Delhaize’s chief executive Pierre-Olivier Beckers comments.

At the end of 2005 Delvita employed approximately 3,800 people. The agreement between Delhaize and Rewe foresees that all contractual employees of Delvita continue under Rewe ownership. Delhaize states further that closing of the transaction is subject to the customary conditions, including approval by the appropriate competition authorities.