CANADA: Sobeys to sell stores to gain Safeway deal OK

Canadian retailer Sobeys has agreed to sell 23 stores in order to gain competition clearance for its acquisition of Safeway Inc's business in the country.

By Dean Best

Canadian retailer Sobeys has agreed to sell 23 stores in order to gain competition clearance for its acquisition of Safeway Inc’s business in the country.

Sobeys will offload a mix of its own stores – run under its namesake, IGA and Thrifty Stores banners – as well as Safeway outlets.

The C$5.8bn deal was announced in June. It saw Sobeys take on 213 grocery outlets run under the Safeway banner in western Canada, as well as other assets including 12 manufacturing plants and four distribution centres.

Sobeys president and CEO Marc Poulin said he expected the transaction to be finalised next month.

Click here for our analysis of what the deal means for Sobeys and Safeway, published in June.