Canada’s competition watchdog says Shell Canada Ltd. has agreed to sell some of its Western assets to advance its $100 million deal to buy gas stations from a subsidiary of grocery giant Empire Co. Ltd.
The Competition Office says it concluded that the power company’s plan to buy 56 service stations from Sobeys Capital Inc. would likely lessen or prevent competition in three markets in Alberta and British Columbia.
To resolve concerns, the office says Shell and its subsidiary Canadian Mobility Services Ltd. will sell assets in Brooks, Alta, and in Fort St. John and Mission, BC.
The office says Competition Commissioner Matthew Boswell is satisfied that the divestment agreement will address competition concerns likely to result from the proposed transaction.
Shell reached an agreement in December to buy all of Sobeys’ western Canadian service stations, saying the deal would help it grow its fuel retail footprint across the country.
Shell supplies fuel to some 1,383 gas stations across Canada, while Sobeys owns some 391 stations and convenience stores.