One of Canada’s largest supermarket chains has inked a deal to sell 30 of its stores in Western Canada.
The close to $430-million sale will see British Columbia-based Overwaitea Food Group, parent company of Save-On-Foods, purchase 15 locations, and Federated Co-operatives Ltd. buy 14 locations from Nova Scotia-based Sobeys Inc., which owns the Safeway chain of grocery stores.
Sobeys also signed a deal to sell its Price Chopper location in Winnipeg to another, unidentified buyer.
It is anticipated the deals will close in March or early April.
As part of the 2013 purchase of the Safeway Canada chain, the Competition Bureau, a national consumer protection agency, required Sobeys to sell 23 of its locations.
The Safeway store in 100 Mile House is not one of the locations named in the most recent sales agreement.
It is business as usual for shoppers in the South Cariboo, says Sobeys media representative Andrew Walker. “There’s no impact on any other store that wasn’t sold.”
He adds the company hasn’t made any decisions on the branding of Safeway stores following its purchase of Canada Safeway last year.
“(Rebranding) is not an immediate priority for us. It’s something we’ll look at further down the road.”