The sale will satisfy the divestiture requirements of Canada’s Competition Bureau in Sobeys purchase of Canada Safeway, according to a news release from the company.
The Stellarton, Nova Scotia-based retailer said it plans to sell 22 stores to Overwaitea Food Group and Federated Co-operatives Limited on behalf of the Cooperative Retailing System, according to the release.
Also, Sobeys has signed a binding letter of intent with another retailer for the sale of its Price Chopper location in Winnipeg, which the company must divest as part of its October consent agreement.
Another seven stores in British Columbia are slated to be acquired by Overwaitea, according to the release.
Total proceeds from the Overwaitea and Co-op transactions will be about $430 million, and proceeds will be used to repay bank debt, according to the release.
The sales agreements with Overwaitea and Federated Co-ops, have received government approval, but Sobeys said the Price Chopper agreement still must be finalized.