Sobeys to sell 23 stores in Western Canada

Competition Bureau orders sale to preserve grocery competition in Western Canada

STELLARTON, N.S. –  The Competition Bureau has ordered Sobey’s Inc. to sell 23 stores in Western Canada before it will approve its $5.8-billion purchase of grocer Safeway Canada. 

The Nova Scotia-based supermarket chain says it has agreed to put the supermarkets on the block and it expects to close the acquisition of the Canadian assets of Safeway in early November. .

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

The Competition Bureau said it decided to order the sale of 23 stores to preserve competition in certain markets in British Columbia, Alberta, Saskatchewan and Manitoba.

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 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.

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.”

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.

Five of the affected stores are in Winnipeg, four in Edmonton and two in Victoria. The full list:

• Sidney, B.C., Safeway Sidney, 2345 Beacon Ave.
• Tsawwassen, B.C., Safeway Tsawwassen, 1143 — 56th Street.
• Victoria, Safeway University Heights, 3958 Shelbourne Street.
• Victoria, Safeway Fort and Foul, 1950 Foul Bay Road.
• New Westminster, B.C., Thrifty Foods Sapperton, 270 East Columbia Street.
• Edmonton, Safeway Millwoods, 2331– 66th Street.
• Edmonton, Sobeys Hawkstone, 18370 Lessard Rd.
• Edmonton, Sobeys Goldbar, 5036 — 106th Ave.
• Edmonton, IGA Ottewell, 6204 — 90th Avenue NW.
• Canmore, Alta.,  Sobeys Canmore, 950 Railway Ave.
• Cochrane, Alta.,Sobeys Cochrane, 65 Bow Street.
• Leduc, Alta. Sobeys Leduc, 5421 — 50th Street.
• Fort McMurray, Alta., Safeway Thickwood, 131 Signal Rd.
• Fort Saskatchewan, Alta., Sobeys Station Square, 10004 — 99th Ave.

• Taber, Alta., Safeway Taber, 4926 — 46th Avenue
• Wetaskiwin, Alta., Sobeys Wetaskiwin, 4703 — 50th Street
• Regina, Safeway Regina, 3801 Albert Street
• Saskatoon, Safeway 8th/Circle, 3310 — 8th Street East
• Winnipeg, Safeway Main Street, 1441 Main St.
• Winnipeg, Safeway Southdale Centre, 77 Vermillion Rd.
• Winnipeg, Safeway Grant Park, 1120 Grant Ave.
• Winnipeg, Safeway St. Vital, 850 Dakota St.
• Winnipeg, Price Chopper Stafford Square, 677 Stafford S.