US retailer A&P plans to sell its stake in Canadian peer Metro to help finance its takeover of regional US retailer Pathmark.
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A&P, which has secured financing to fund the US$1.3bn deal, wants to reduce its debt burden after it snaps up Pathmark.
A&P owns 11.7m shares in Metro and said it has agreed to sell its stake to Canadian financial adviser TD Securities. Based upon the closing price of Metro’s shares on Friday (2 November), A&P said its stake would be worth $45m.
A&P said it expects to close the acquisition of Pathmark in December, some nine months after a deal was first agreed.
The deal has faced delays amid investigations from US anti-trust body, the Federal Trade Commission.
A&P operates 337 stores; Pathmark runs 140 supermarkets in the New York, New Jersey and Philadelphia metropolitan areas.
