Sobeys Inc. will be divesting 23 stores — including the one in Cochrane — after being ordered by the Canadian Competition Bureau.
By signing the consent agreement, Sobeys is allowed to proceed with the acquisition of the assets of Canada Safeway.
“We are required to sell 23 stores in Western Canada,” said Andrew Walker, vice president of communications and corporate affairs for Sobeys Inc. “The stores will be sold to a competitor who will operate a grocery store in the space.”
The consent agreement, which was filed Oct. 22, came on the heels of a review of the proposed Sobeys-Safeway deal.
It was concluded the acquisition would likely result in the lessening or prevention of competition between grocery retailers in areas of Western Canada.
The affected stores include the Sobeys in Cochrane and Canmore and four grocery stores in Edmonton.
The 23 stores are spread throughout British Columbia, Alberta, Saskatchewan and Manitoba, and include Safeway stores, Thrifty Foods, IGA and Price Chopper.
The Cochrane Sobeys, located on Bow Street, opened at the beginning of June.
“These are great stores with great employees,” said Walker. “We fully expect interest in the Cochrane store.”
Sobeys, a subsidiary of Empire Company Limited, owns or franchises more than 1,300 stores in 10 provinces under a variety of retail banners.
“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 at the Canadian Competition Bureau.
The Competition Bureau’s merger review process involves collecting information from, and conducting interviews with, a wide range of industry participants.
