PlanetRetail.net reports this morning that Loblaws “may have its sights on the Canadian operations of US Safeway” amid rumors that Canada Safeway is for sale.
The theory goes that Safeway is looking to reduce debt, especially now that it may have to sell Dominick’s in Chicago at a price far lower than what it paid for the company just a few years ago. Selling Canada Safeway would allow it to focus on core US operations, while a Loblaws acquisition of the company would permit it to expand in the western part of the country.
However, it also is thought that both Sobey’s and Metro would bid for Canada Safeway…perhaps setting off an acquisition frenzy similar to that occurring in the UK when Safeway Plc went on the market.
The theory goes that Safeway is looking to reduce debt, especially now that it may have to sell Dominick’s in Chicago at a price far lower than what it paid for the company just a few years ago. Selling Canada Safeway would allow it to focus on core US operations, while a Loblaws acquisition of the company would permit it to expand in the western part of the country.
However, it also is thought that both Sobey’s and Metro would bid for Canada Safeway…perhaps setting off an acquisition frenzy similar to that occurring in the UK when Safeway Plc went on the market.
- KC's View:
