Safeway Inc. will sell its supermarket operations in Canada to food retailer Sobeys for 5.8 billion Canadian dollars ($5.7 billion).
Sobeys, a unit of Empire Company Limited, said the deal includes 213 grocery stores under the Safeway banner in western Canada, 10 liquor stores, 12 manufacturing facilities and four distribution centers.
That leaves Safeway with about 1,400 supermarkets in the U.S., with many of those in western states. The company, based in Pleasanton, Calif., operates stores under names including Vons in Southern California and Nevada and Randalls and Tom Thumb in Texas. “This was an unsolicited offer,” CEO Robert Edwards said in a brief call with analysts after the announcement.