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ARTICLE · 19 FEBRUARY 2014

One Company's Divestitures Are Another Company's Opportunity

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Sobeys Makes Required Grocery Divestiture and Sells 7 More Stores to Overwaitea.

CanadaAntitrust/Competition Law

Sobeys Makes Required Grocery Divestiture and Sells 7 More Stores to Overwaitea

Further to the October 2013 Consent Agreement (the "Agreement") entered into with Sobeys Inc. ("Sobeys") in connection with its $5.8 billion acquisition of Canada Safeway Limited ("Safeway"), the Competition Bureau (the "Bureau") has announced its approval of the sale of 22 grocery stores to Overwaitea Food Group LP ("Overwaitea") and Federated Co-Operatives Limited. The Bureau also approved Overwaitea's acquisition of an additional seven Sobeys stores that were not required to be divested under the Agreement.

While it is entirely possible that Sobeys' sale of these additional stores to Overwaitea may have simply flowed from the negotiations regarding the sale of stores required to be divested under the Agreement, it is also possible that Overwaitea was able to benefit from its position as one of the limited number of prospective purchasers acceptable to the Commissioner

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