Supermarket chain Sobeys Inc. has reached an agreement to acquire Safeway Inc.’s Canadian assets for $5.8 billion.

“The acquisition allows us to leverage our existing assets and, in turn, position Sobeys to compete even more effectively within the changing and increasingly competitive grocery retail landscape,” says Paul D. Sobey, president and CEO of Sobey’s parent company, Empire Co. Ltd.

Canada Safeway has a store network that totals approximately 9 million square feet, with 60 per cent of its portfolio located in Vancouver, Calgary, Edmonton and Winnipeg. An independent appraisal revealed Canada Safeway’s real estate value is approximately $1.8 billion.

The assets to be purchased by Sobeys include:

• 213 full-service grocery stores under the Safeway banner in Western Canada;
• 199 in-store pharmacies with market-leading productivity;
• 62 co-located fuel stations;
• 12 manufacturing facilities;
• 10 liquor stores; and
• Four primary distribution centres and related wholesale business.