Safeway completes sale of Canadian operations to Sobeys

PLEASANTON, Calif. — Safeway on Monday announced that it has completed the sale of the net assets of Canada Safeway to Sobeys, a wholly-owned subsidiary of Empire Co.

Proceeds from the transaction of $3.8 billion in cash after taxes and expenses and between $400 and $450 million in U.S. tax benefits related to the exit of the Chicago market will be used to pay down $2 billion of debt, with the majority of the remainder to be used to buy back stock. In addition, some of the proceeds may be used to invest in growth opportunities, Safeway reported.

"We are pleased to have completed the sale of our Canadian operations to Sobeys," stated Robert Edwards, Safeway president and CEO. "We believe this represents a significant contribution to shareholder value."