Canadian grocer Empire Co. Ltd., which operates grocery cahin Sobeys, will acquire Safeway‘s Canadian business worth C$5.8bn ($5.69bn) post approval from Canada’s Competition Bureau.

Canada’s competition watchdog noted that that the asset sales were required as the deal would otherwise have led to a substantial lessening of competition in the sale of a full-line of grocery products in a number of local markets in Western Canada.

As part of the deal, Empire will acquire about 200 grocery stores, and 200 in-store pharmacies, along with some liquor stores, fuel stations and distribution centers.

It will also divest 23 stores in the provinces of British Columbia, Alberta, Saskatchewan and Manitoba, including 13 Safeway stores and 10 stores that operate under different banners owned by Empire.

The deal is now expected to close in November 2013.

Empire owns close to 1,500 stores in 10 provinces across Canada with retail banners that include Sobeys, IGA, Foodland, FreshCo, Price Chopper and Thrifty Foods.

Sobeys believes that this deal will position itself as a leading grocer in the country and boost its revenue to C$24bn.

Safeway is the largest food and drug retailer in North America. It operates 1,406 stores in the US which had annual sales of $37.5bn in 2012.