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Sobeys receives approval for Safeway purchase

A Sobeys store in Winnipeg on June 13, 2013. Chris Stanton

STELLARTON, N.S. – Sobeys says it will put 23 stores up for sale in exchange for regulatory approval for its $5.8-billion purchase of grocer Safeway Canada.

The Nova Scotia-based supermarket chain says the Competition Bureau approved the transaction with the understanding that certain locations in Western Canada would be put on the market.

Sobeys, which is owned by Empire Co. Ltd., says the stores are under various labels, including Safeway, Sobeys, IGA and Price Chopper.

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The retail stores to be divested are located in the provinces of Alberta, British Columbia, Saskatchewan and Manitoba. A full list of the stores to be divested can be seen in the Position Statement.

“I am confident this agreement will ensure that Canadian consumers continue to benefit from competitive prices for a wide selection of grocery products,” said John Pecman, Commissioner of Competition. “I commend the parties for their stellar cooperation with the Bureau throughout our review of the proposed transaction.”

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Mergers in Canada are subject to review by the Bureau under the Competition Act .

The company says it expects to close the acquisition of the Canadian assets of Safeway in early November.

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