Large Safeway (SWY) Deal Lifts Grocery Segment (SWY( (KR)
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Safeway (NYSE: SWY) shares are ripping in late trading Wednesday following news that it is planning a major asset divestiture.
According to a release issued after markets closed, Safeway is planning to sell its Canadian assets in a CDN$5.8 billion (net CDN $4 billion) cash deal with Sobeys. Proceeds will be used to pay down $2 billion of debt, with the rest to be used for buybacks.
Moving in late trading along with Safeway are SUPERVALU (NYSE: SVU), Ingles Markets (Nasdaq: IMKTA), and Kroger (NYSE: KR). Safeway itself is up about 30 percent.
According to a release issued after markets closed, Safeway is planning to sell its Canadian assets in a CDN$5.8 billion (net CDN $4 billion) cash deal with Sobeys. Proceeds will be used to pay down $2 billion of debt, with the rest to be used for buybacks.
Moving in late trading along with Safeway are SUPERVALU (NYSE: SVU), Ingles Markets (Nasdaq: IMKTA), and Kroger (NYSE: KR). Safeway itself is up about 30 percent.
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