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.
-See this Sobeys press release
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