Sobeys receives approval for Safeway purchase

The federal Competition Bureau has approved the $5.8-billion purchase of grocer Safeway Canada by Sobeys, but only on condition that the Nova Scotia-based supermarket operator put 23 stores in Western Canada up for sale.

STELLARTON, N.S. — The federal Competition Bureau has approved the $5.8-billion purchase of grocer Safeway Canada by Sobeys, but only on condition that the Nova Scotia-based supermarket operator put 23 stores in Western Canada up for sale.

Sobeys purchased 213 stores under the initial agreement, which included 199 in-store pharmacies and 62 gas stations on the Safeway properties.

The retailer will still come away with a gain of 190 locations overall from the Safeway acquisition.

“I am confident this agreement will ensure that Canadian consumers continue to benefit from competitive prices for a wide selection of grocery products,” Competition Commissioner John Pecman said in a statement Tuesday.

Sobeys, which is owned by Empire Co. Ltd. (TSX:EMP.A), says the stores for sale are under various labels, including Safeway, Sobeys, IGA and Price Chopper. The stores are located in British Columbia, Alberta, Saskatchewan and Manitoba.

“Our focus now turns to closing the deal, which we expect to do in early November,” Sobeys president and CEO Marc Poulin said in a release.

The acquisition marks one of the larger recent transactions by a Canadian grocer, as consolidation sweeps the industry amid the entry and expansion of several U.S. retail giants.

Earlier this year, Loblaw (TSX:L) secured an agreement to buy Shoppers Drug Mart Corp. (TSX:SC) for $12.4 billion in cash and stock, a deal that is still under review by the federal competition agency.

Fellow grocer Metro (TSX:MRU) has yet to make its own strategic acquisition, though its stores are centralized in Ontario and Quebec, with some locations in New Brunswick.

Just Posted

Springbrook Skate Park gets financial boost

Province approves $125,000 grant for proposed skate park

ReThink Red Deer gets thumbs up from city on pollinator barn structure

Group is hoping to get a $40,000 building grant

Driver who backed into Red Deer pizzeria sentenced

David Andrew Amstutz sentenced for failing to remain at the crash scene

Team Alberta athletes arrive in Red Deer on Saturday for pre-games orientation

Excitement is building with less than a month to go, says Team Alberta spokesperson

UPDATED: STARS Lottery is back

Lacombe STARS patient tells his story

Trudeau says politicians shouldn’t prey on Canadians’ fears

The Prime Minister was speaking at a townhall in Ontario

Olympian snowboarder Max Parrot diagnosed with Hodgkin’s lymphoma

Each year in Canada, approximately 900 people are diagnosed with Hodgkin’s lymphoma

‘Prince of Pot’ Marc Emery accused of sexual assault, harassment

Emery denied the allegations, but a Toronto woman says she is not the only one speaking out

Asteroids are smacking Earth twice as often as before

The team counted 29 craters that were no older than 290 million years

Canada’s arrest of Huawei exec an act of ‘backstabbing,’ Chinese ambassador says

China has called Canada’s arrest of Huawei chief financial officer Meng Wanzhou ‘politically motivated’

In limbo: Leftover embryos challenge clinics, couples

Some are outright abandoned by people who quit paying storage fees and other couples struggle with tough decisions

Netflix rejects request to remove Lac-Megantic images from ‘Bird Box’

At least two shows on Netflix’s Canadian platform briefly use actual footage of the 2013 tragedy

Teen vaping is an epidemic: US government

E-cigarettes are now the top high-risk substance used by teenagers, outpacing cigarettes, alcohol, marijuana

‘I never said there was no collusion,’ Trump lawyer says

President Donald Trump’s lawyer Rudy Giuliani says he has ‘never said there was no collusion’

Most Read