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ZAANDAM, The Netherlands - International food retailer and foodservice operator Royal Ahold on Friday said it has assumed full control of Disco Ahold International Holdings (DAIH), its former Latin American joint venture company with Velox Retail Holdings (VRH).
Ahold announced on July 17 that Velox Retail Holdings had defaulted on its bank debt and that Ahold will take over Velox's loan obligations and buy out its share of Disco Ahold International Holdings.
Ahold has lost about half its market value since the start of the year as concerns about its large presence in Latin American markets weighed. The company is significantly exposed to the crisis-hit Argentinian economy.
Disco Ahold International Holdings operates over 350 supermarkets in Argentina, Chile, Peru and Paraguay.
In other related news, Ahold today refused to comment on reports it is interested in buying a majority stake in Danish supermarket chain Dansk Supermarked, Dow Jones news wire reports. Ahold and Dansk Supermarked have been partners since last year in a joint venture to develop and operate discount stores and hypermarkets in Sweden and Norway.