Welcome to FIS   Sponsored By
United States
Subscribe to FIS | Register with FIS | Advertise with FIS | Newsletter | About FIS | Contact us

Sobeys' President and Chief Executive Paul Sobey. (Photo: StockFile)

Sobeys will take over Safeway's Canadian assets

Click on the flag for more information about Canada CANADA
Friday, June 14, 2013, 02:10 (GMT + 9)

Grocer Sobeys Inc will acquire Canada Safeway Ltd for CAD 5.8-billion (USD 5.7 billion), which it believes will allow it to more smoothly penetrate the Western Canadian retail market, since the retailer has 213 stores across the country.

"After the acquisition, Sobeys will be a leading grocer in Western Canada and the largest grocer in Alberta, an attractive, high-growth market," said President and Chief Executive Paul Sobey. "This acquisition represents a unique and highly strategic opportunity for Sobeys to leverage its existing asset base, effectively creating a new platform for growth."

The acquisition will be completed through the wholly-owned Sobeys Inc subsidiary of Sobeys' parent company, Empire Company Limited. It will include 199 in-store pharmacies and 62 gas stations and Empire Co will also own 10 liquor stores, four distribution centres and 12 manufacturing facilities.

So far, it has not been decided whether the new network of stores will be branded under the Safeway or Sobeys banner or whether the two brands will be kept independent.

Empire said it expects for cost synergies to reach about CAD 200 million (USD 196.2 million) over three years by putting together the distribution, information technology and procurement divisions of both companies, The Canadian Press reports.

There has been no comment on whether layoffs are expected.

In addition to traditional domestic rivals like Loblaw, major US retail players like Walmart have been entering the Canadian market as well.

In its last financial year, Safeway had CAD 6.7 billion (USD 6.6 billion) in sales; it runs 1,400 stories in the US. The chain said its proceeds from the sale will be spent on paying down debt and buying back stock, as well as possibly investing in "growth opportunities."

About 60 per cent of Canada Safeway’s properties are located in Vancouver, Calgary, Edmonton and Winnipeg.

The deal has already been approved by the boards of directors of both companies and will be subject to approval by the Competition Bureau, CBC News reports.

Empire expects the transaction to be completed in the fourth-quarter of 2013 and immediately add to adjusted net earnings per share.

By Natalia Real


Click to know how to advertise in FIS
Oct 3, 02:40 (GMT + 9):
IN BRIEF - Advisory panel set up to implement Bui fisheries management plan
New Zealand
Oct 3, 02:40 (GMT + 9):
IN BRIEF - Kermadec sanctuary breaches rights - Maori Fisheries Trust
United States
Oct 3, 02:40 (GMT + 9):
IN BRIEF - Massachusetts gets last batch of fisheries disaster aid
Viet Nam
Oct 3, 02:30 (GMT + 9):
IN BRIEF - Vietnam Shrimp exports to the UK keep growing
United Kingdom
Oct 3, 02:00 (GMT + 9):
IN BRIEF - Young's Seafood: Fraserburgh recovery plan set out
Viet Nam
Oct 3, 02:00 (GMT + 9):
IN BRIEF - Pangasius exports to Saudi Arabia increased significantly
Oct 2, 23:50 (GMT + 9):
Second anchovy season likelihood to be known next week
United States
Oct 2, 23:40 (GMT + 9):
Portable device quickly tests shellfish toxins
United Kingdom
Oct 2, 23:20 (GMT + 9):
New measures to protect crab and lobster stocks
Oct 2, 23:00 (GMT + 9):
Canned seafood exports grow over 6pc
Oct 2, 22:30 (GMT + 9):
Mitsui to invest USD 100.7m in stake of Multiexport's subsidiary
Oct 2, 21:50 (GMT + 9):
Salmon price status at week 40
Viet Nam
Oct 2, 03:20 (GMT + 9):
Tuna sales to Canada grow 61pc in August
United States
Oct 2, 03:00 (GMT + 9):
IN BRIEF - US Foods Named First Nationwide Foodservice Distributor to Achieve Marine Stewardship Council (MSC) Certification
Oct 2, 03:00 (GMT + 9):
IN BRIEF - MPEDA, fisheries experts to hold meet on shrimp diseases

Tuna brands and supermarkets have improved, according to Greenpeace
Spain Most of the Spanish canned tuna producers and distributors have improved in terms of traceability, their fight against illegal fishing and fishing policy of purchasing tuna products, according to Greenpeace.
Finfish Study reinforces adequate ATQ system
European Union The EU Fish Processors and Traders Association has presented the highlights of its last Finfish Study.
New legislation proposes changing Alaska pollock's name
United States Bipartisan legislation proposes to amend the Federal Food, Drug, and Cosmetic Act to change the market name of “Alaska pollock” to “pollock” in order to avoid misrepresentation and protect Pacific Northwest Seafood.
EC issues yellow cards to Taiwan and Comoros over illegal fishing
European Union The EC has warned the Comoros and Taiwan that they risk being identified as uncooperative countries in the fight against illegal, unreported and unregulated fishing.
Maruha Nichiro Corporation
Nichirei Corporation -Headquarter-
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation -Wartsila Group Headquarter-
ITOCHU Corporation -Headquarter-
BAADER - Nordischer Maschinenbau Rud. Baader GmbH (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Pescanova, S.A. - Group Headquarters
Sea Harvest Corporation (PTY) Ltd.
I&J - Irvin & Johnson Limited
Blue Continent Products (Pty) Ltd - (Oceana Group Limited)
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods Inc. -Headquarter-
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel ehf - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
Food Project (Siam) Co., Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO -Food and Agriculture Organization- Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Group Headquarters
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Omega Protein Corporation -Headquarter-
Marona S.A.
Marine Harvest ASA - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. -Headquarter-
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
Mitsubishi Corporation Marine Products Depts. D.Team
CJ Corporation  -Holding Headquarter-
Greenpeace International - The Netherlands
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
Ocean Trawlers Group - Ocean Trawlers HK Ltd.
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation -Headquarter-
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart / Wal-Mart Stores, Inc. (Supermarket) -Headquarter-
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
INVE Group - Head Office
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
Morpol ASA - Group Headquarters
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2015 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER