By Sabela Ojea

 

Koninklijke Ahold Delhaize NV late Friday said that it has closed a deal to terminate its U.S. brand Stop and Shop's participation in the United Food and Commercial Workers Local 1500 Pension Fund, which won't affect its issued outlook for the year.

The Amsterdam-listed food retailer said Stop & Shop will pay the 1500 plan a withdrawal liability of $225 million on a pretax basis, which will be satisfied by installment payments over the next three years.

"The agreement improves the security of pension benefits for associates as well as reduces financial risk for the company," it added.

The brand also expects to pay $4.1 million to defined contribution plan to provide transition benefits to some plan participants who are near retirement, the company said.

In 2020, $112.5 million is expected to be paid, the company said.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

December 21, 2020 01:46 ET (06:46 GMT)

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