Sobeys signs deals to sell 30 stores in Canada

Sobeys has signed deals to sell 29 stores in Western Canada for a total of roughly $430 million. The company also signed a letter of intent to sell a 30th store.

Sobeys is selling the stores as part of an agreement with Canadian antitrust regulators related to its purchase of Safeway Canada (NYSE: SWY) for $5.7 billion last year. Canada's (NYSE: SWY) Competition Bureau required divestiture of a number of their locations after the Safeway sale was finalized.

In the original deal announced last June, Sobeys purchased 213 Safeway Canada stores, which included 199 in-store pharmacies and 62 gas stations on the Safeway properties. The deal added 190 locations overall to Sobeys' store count.

British Columbia-based Overwaitea Food Group has agreed to buy 15 locations, while Federated Co-operatives will purchase 14 stores. The company has also entered an agreement to sell one store to an undisclosed buyer. Sobeys said Overwaitea and Federation have received approval from the Competition Bureau and that it anticipates the deals will close in March or early April.

Sobeys owns or franchises more than 1,500 stores in all 10 Canadian provinces under the banners of Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and Lawton's Drug Stores, in addition to more than 330 retail fuel locations.

For more:
-See this Sobeys press release

Related stories:
Safeway, Giant Eagle Beam Up iBeacon To 150 Stores 
Safeway Canada sells out to Sobeys for $5.7 billion
Safeway self-checkout security hole illustrates the importance of button sequence
Safeway stock rallies on buyout rumors; debt concerns rise
Safeway will pay $600K for pollution violations

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.