Sobeys sees $70-million saving from takeover

Article Abstract:

Empire Company Ltd.'s subsidiary Sobeys Canada Inc. estimates to generate around C$70 million in savings from its planned C$1.5 billion acquisition of Oshawa Group Ltd. The expected operating savings will result from combined purchasing, lower expenses, better distribution system and collaboration of expertise between the two grocery chains. Sobeys Canada is proposing C$116 in cash per share for the 685,504 Oshawa voting shares and C$36 for each one of the 38 million Oshawa class A non-voting shares. Stellarton, Nova Scotia-based Empire said all Oshawa voting shares holders consented to the offer, but formal bids are yet to be submitted on Nov. 17, 1998. Toronto, Ontario-based Oshawa Group has 707 stores operating under the IGA name.

Comment:

Estimates to generate around C$70 mil in savings from its planned C$1.5 bil acquisition of Oshawa Group Ltd

Sobeys Canada Inc.

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Empire's offer for Oshawa puts scare in food workers

Article Abstract:

Empire Co. Ltd.'s bid to purchase the controlling stake held by the Wolfe family in Oshawa Group Ltd. of Toronto, Ontario, has raised concern of unions that represent food workers in Canada. The unions fear the transaction would mean further consolidation of the grocery market and therefore poses layoffs and poorer labor contract. Jean Lortie, a member of the Confederation des Syndicats Nationaux, noted the larger chains created through consolidation will threaten the existence of smaller retailers.

Comment:

Its bid to buy controlling stake of Wolfe family in Oshawa Group Ltd raises concern of union representing food workers

Nova Scotia, Empire Company Ltd.

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