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Sobeys Completes Safeway Acquisition

STELLARTON, Nova Scotia — Sobeys here on Monday said it had completed its $5.8 billion purchase of Safeway Canada.

Jon Springer, Executive Editor

November 5, 2013

1 Min Read
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STELLARTON, Nova Scotia — Sobeys here on Monday said it had completed its $5.8 billion purchase of Safeway Canada.

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"This is a great day in the 106-year history of Sobeys," Paul D. Sobey, president and chief executive officer of Sobeys parent Empire Co., said in a statement. “The addition of Canada Safeway represents a unique and highly strategic opportunity to leverage Sobeys' modern asset base and provides us with a new and exciting platform for growth as we move forward."

Safeway, Pleasanton, Calif., said it would realize around $4 billion after taxes and expenses as a result of the deal. The company Monday said those funds, as well as $400 million to $450 million in U.S. tax benefits related to the exit of the Chicago market, will be used to pay down $2 billion of debt, with the majority of the remainder to be used to buy back stock.

Read more: Sobeys Must Divest 23 Stores: Regulator

 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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