Grocer Sobeys Drops $5.7B On Rival Safeway's Canadian Biz

Law360, New York (June 12, 2013, 5:53 PM EDT) -- Sobeys Inc. will fork over CA$5.8 billion (US$5.7 billion) for the Canadian operations of rival grocer Safeway Inc., it said Tuesday, a move meant to expand its presence in the country's western provinces and open new growth prospects.

The all-cash deal will pepper in more than 200 Safeway stores to the existing Sobeys network, which already extends across Canada. The buyer said it will cover the purchase price through a mix of CA$1.5 billion equity offering, proceeds from the CA$1 billion sale-leaseback of Safeway real estate...
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