Market News

Metro's A&P Purchase Biggest Canadian Grocery Acquisition in Years

Despite all indications that Sobeys would be the victor, Metro Inc. has purchased Great Atlantic & Pacific Tea Co. The Montreal firm will pay $1.7 billion ($1.2 billion in cash; $500 million in Metro stock) for the network of 579 food stores with sales of close to $11 billion. Metro Inc., which owns Metro, Metro Plus, Super C, Loeb and Brunet banners, has annual sales of $6.1 billion and 33,000 employees. A&P Canada, which operates 236 food stores in Ontario under the Dominion, Food Basics, A&P, The Barn and Ultra Food & Drug banners, has annual sales of $4.4 billion and more than 32,000 employees. The transaction is the biggest acquisition in Canadian grocery industry since Sobeys bought Oshawa Group Ltd.'s IGA stores in Ontario. Source: Canadian Grocer E-Newsletter, July 29,2005.