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Safeway Inc. has completed the sale of its Canadian operations to Sobeys Inc., a wholly-owned subsidiary of Empire Company Limited, per the agreement announced on June 12, 2013.
"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 transaction of C$5.8 billion in cash and $400-$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, according to the company.
Pleasanton, Calif.-based Safeway Inc. operates 1,406 stores in the United States.