Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau approves sale of 22 Sobeys grocery stores, (Feb 14, 2014)
Organizations Mentioned:Federated Co-operatives Limited | Overwaitea Food Group LP | Sobeys Inc.
The Canada Competition Bureau announced yesterday that it has approved the sale by Sobeys Inc. of 22 grocery stores to Overwaitea Food Group LP and Federated Co-operatives Limited. The stores are being sold pursuant to an October 2013 consent agreement that requires Sobeys to sell a total of 23 grocery stores to remedy the Bureau’s competition concerns relating to Sobeys’ proposed acquisition of substantially all of the assets of Canada Safeway. The agreement was designed to ensure that Canadian consumers continue to benefit from competitive prices for a wide selection of grocery products.
The Bureau anticipates that the remaining Sobeys grocery store, Price Chopper Stafford Square in Winnipeg, to be sold in accordance with the consent agreement. The Bureau also reviewed the purchase of seven additional Sobeys stores by Overwaitea Food Group LP and issued a No Action Letter in respect of the purchase of these stores. The seven stores were not part of the October 2013 consent agreement.
Under the terms of the consent agreement, the parties to the transaction were required to divest 10 current Sobeys stores and 13 current Safeway stores, as listed in the agreement, including stores in Alberta, British Columbia, Manitoba, and Saskatchewan. The transaction involved the purchase of 213 grocery retail locations, including 199 in-store pharmacies and 62 co-located fuel stations; 10 liquor stores; 4 primary distribution centers and related wholesale businesses; and 12 food manufacturing facilities, according to the Competition Bureau’s position statement.
Overwaitea Food Group LP is Canada’s largest Western-based food store chain and operates more than 120 stores under the Save-On-Foods, Overwaitea Foods, Cooper’s Foods, Urban Fare, PriceSmart Foods and Bulkley Valley Wholesale banners. Federated Co-operatives Limited is owned by 225 retail co-ops that operate a number of food stores and four distribution centers in Western Canada.
“By ensuring that Canadians have access to a variety of grocery retailers, consumers will continue to benefit from competitive prices for a wide selection of grocery products,” said John Pecman, Commissioner of Competition.
Companies: Sobeys Inc.; Overwaitea Food Group LP; Federated Co-operatives Limited
News: Antitrust