PLEASANTON, CA
Safeway has completed the sale of the net assets of Canada Safeway to Sobeys. The sale was completed in accordance with the asset purchase agreement announced earlier this year on June 12, 2013 and with the consent agreement with the Competition Bureau announced on October 22, 2013, according to a press release.
"We are pleased to have completed the sale of our Canadian operations to Sobeys," said Robert Edwards, President and CEO. "We believe this represents a significant contribution to shareholder value."
Proceeds from the C$5.8 billion cash transaction, approximately C$4.0 billion after taxes and expenses, along with the $400-$450 million in U.S. tax benefits related to the exit of the Chicago market will be used to pay down $2.0 billion of debt. The majority of the remainder will be used to buy back stock. The company notes that some of the proceeds may be used to invest in growth opportunities.
