Canadian retailer Sobeys has announced it is to sell off 30 stores in the west of the country in part due to its move to secure regulatory approval for last year’s acquisition of Safeway Inc’s local business.
Last October, Sobeys agreed to sell 23 stores in order to gain competition clearance for the deal.
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On Thursday (13 February), Sobeys said it had struck deals to sell 22 of the outlets to local peers Overwaitea Food Group and Federated Co-operatives Limited. A separate “binding letter of intent” for the 23rd store had been signed with an unnamed buyer.
However, on top of those 23 outlets, Sobeys has also agreed to sell seven other outlets in British Columbia to Overwaitea.
In total, Overwaitea will buy 15 stores, with Co-op buying 14 others. Sobeys said proceeds from those two deals would total C$430m (US$392m).
Overwaitea has acquired ten Safeway stores, two Sobeys outlets and three Thrifty Food stores. Co-Op has agreed to buy eight Safeway stores and six AB Sobey outlets.
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By GlobalData
