Ahold to pull out of South America

Link: Ahold: Don’t discount possibility of fraud

The scandal struck grocer last week said it would renew the investigation into the accounts of Argentine subsidiary Disco. Ahold first reported suspected irregularities in Disco’s accounts in February, when it simultaneously reported a $500m hole in the accounts of its subsidiary, US Foodservice.

Ahold said it wants to divest its South American subsidiaries in order to concentrate on its ‘mature and most stable markets and to generate funds to pay down debt’. It has not set a timescale in a bid to maximise value, but is already in negotiations to divest its holdings in Chile.

‘We will continue to fully support our operations during this divestment process by ensuring that all our obligations to suppliers continue to be met,’ said Theo de Raad, Ahold board member responsible for Latin America.

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