[caption id="attachment_79588" align="aligncenter" width="554"] Sobeys Has To Sell 30 Stores In Western Canada Before They Can Expand[/caption]
Sobeys signs deals to sell 30 stores in Western Canada
Sobeys struck three separate deals to divest itself of 30 outlets for around $430 million. Overwaitea Food Group agreed to buy 15 stores. Federated Co-operatives Ltd. went in on 14 locations. Sobeys also signed a letter of intent to sell a Price Chopper-branded outlet in Winnipeg to an unidentified buyer. Money will be used to pay down existing bank debt.
Approval for the proposed sales has been forthcoming from the Competition Bureau. Sales of the 29 stores should be finalized in March or April. The Price Chopper sale is pending Competition Bureau approval. Sobeys officials said they expected that approval.
Nova Scotia-based Sobeys had to sell the Western Canadian outlets following a 2013 agreement with the Competition Bureau allowing it to purchase Canada Safeway. The Canadian Safeway acquisition was a major event as Sobeys agreed to pay $5.8 billion to buy Safeway's 213 Western Canadian stores.