Sobeys Inc. has entered into purchase and sale agreements that will see the company sell 30 stores in western Canada.
The agreements with Overwaitea Food Group and Federated Co-Operatives Limited on behalf of the Co-Operative Retailing System (Co-op) will see Sobeys sell 22 of the 23 stores it is required to divest as part of its purchase of Canadian Safeway. The final Price Chopper location in Winnipeg, which Sobeys is required to divest as required by the Competition Bureau, has been sold to another retailer.
Overwaitea will acquire an additional seven stores in British Columbia as part of the sale agreement. It includes the sale of 10 Safeway stores located in British Columbia and Alberta, as well as two Sobeys and three Thrifty Foods locations.
Co-op will purchase eight Safeway stores, five Sobeys and an IGA, all located across Manitoba, Saskatchewan and Alberta.
The total proceeds from the Overwaitea and Co-op sales are expected to be approximately $420 million, subject to customary closing adjustments. The Price Chopper location remains subject to finalization of the asset purchase agreement with the purchaser.
