Sobeys to Buy Canadian Safeway Stores for $5.8-Billion
By Amanda Brodhagen, Farms.com
The Nova Scotia-based Sobeys grocery store chain announced Wednesday that it has reached a definitive agreement to acquire 213 Canadian Safeway Ltd. stores in Western Canada for $5.8-billion. Empire Co. Ltd., is the parent of the Sobeys.
In a news release, Paul D. Sobey, President and CEO of Empire said, "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. Empire is committed to continuing its focus on food retailing and related real estate assets and will continue to own 100 percent of Sobeys which will be a stronger food company with excellent growth prospects."
The assets include the following:
•213 grocery stores under the Safeway banner in Western Canada;
•199 in-store pharmacies;
•62 co-located fuel stations;
•10 liquor stores;
•4 primary distribution centres and related wholesale business; and
•12 manufacturing facilities.
Sobeys will maintain its spot as the country’s second largest grocer, behind Loblaws Co. Ltd.