STELLARTON, N.S. – Sobeys Inc. (TSX:EMP.A) has signed deals to sell 29 stores in Western Canada for a total of roughly $430 million.
The grocery store chain was required to sell 23 stores as part of an agreement with the Competition Bureau in connection with its purchase of Canada Safeway last year.
Sobeys says Overwaitea Food Group has agreed to buy 15 locations, while Federated Co-operatives Ltd. has agreed to buy 14 stores.
The company has also signed a letter of intent to sell a 30th store,its Price Chopper location in Winnipeg, to another unidentified buyer.
Sobeys said Overwaitea and the Co-op chain have received approval from the Competition Bureau and that it anticipates the deals will close in March or early April.
The sale of the Winnipeg Price Chopper store is subject to finalization of an agreement and approval from the Competition Bureau.
The bureau later issued a release confirming it had approved the sale of 23 stores under the consent agreement and added that its expects the Winnipeg store to be sold in accordance with the agreement.
Note to readers: This is a corrected story. A previous version said Sobeys had signed deals to sell 30 stores. It has signed deals for 29 outlets and a letter of intent to sell the 30th.
