The €25bn tie-up between Ahold and Delhaize will see the European grocers unite for an “assault” on Walmart, writes the FT.

The combination will create the fifth-largest retailer in the US and form Europe’s fourth-largest retailer. Netherlands-based Ahold and Belgium-based Delhaize generate the majority of their sales in the US, where they own chains such as Stop & Shop, Giant and Food Lion. (The Financial Times £)

The FT’s Lex column says that the merger creates “a more subtle outcome than suggested by moves of the raw share price”, which suggested yesterday that investors felt Delhaize had got the raw end of the deal. (The Financial Times £)

The Telegraph notes the deal’s impact on the global retail sector, writing the tie-up is “one of the biggest deals the sector has seen in a decade”. (The Telegraph)

The merger had an impact on supermarket shares in the UK as news of the mega-deal in Europe led to speculation about a deal for Sainsbury’s and Morrisons. Analysts think this will bring consolidation in the UK with either Morrisons becoming a target or, according to scribblers at Societe Generale, Morrisons partnering with Sainsbury’s. (The Daily Mail)

In wider retail, Debenhams has announced steady sales growth as the company warned that shoppers remain cautious about spending even as economic conditions improve. Posting a trading update for the 15 weeks and the 41 weeks to June 13, 2015, the British department said sales grew by 0.9% and it is on track to meet full year market expectations. (The Telegraph)

Ikea is to flatpack its superstores by recreating the format in a smaller outlets. The privately owned Swedish furniture retailer has struggled to find land to accommodate its large stores and is shrinking the new ones to find more sites and reach more customers. (The Daily Mail)

Amazon’s booming UK business paid just £11.9m of tax last year, while the online retailer’s Luxembourg unit took £5.3bn of sales from British internet shoppers without being subject to UK tax. The Amazon group posted a strong UK performance in 2014, with overall takings rising by more than 14% to £5.3bn. However, its British-based Amazon.co.uk Limited subsidiary recorded a profit of just £34.4m and tax of £11.9m. (The Guardian)

The FT looks at valuations in the UK brewing space, noting that BrewDog and Camden Town have both taken some flak over their valuations, with analysts suggesting crowdfunding investors — who take on high levels of risk when they invest — would find it hard to make a financial return. (The Financial Times)

Since 1995, Spanish wine exports have tripled and last year, exports grew 22 per cent to 2.3bn litres, helping the country surpass Italy as the world’s biggest wine exporter by volume. (The Financial Times £)

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