The parent company of the Sobeys and Safeway grocery chains announced it is purchasing the 51 per cent stake for $357 million, based on a value of $700 million. The terms of the deal allow Empire to acquire all of Longo’s over time, but the Longo family plans to remain long-term shareholders. (The Logic)

Talking point: Longo’s, which has 36 locations in Ontario, will help Empire expand its presence in the province. The Sobeys parent acquired another chain, Farm Boy, in 2018 with the same goal in mind. The Tuesday deal includes Grocery Gateway, an e-commerce business that serves 70,000 customers, which Empire said will “continue as a stand-alone business.” Empire has been focusing heavily on growing its e-commerce offering after launching Voilà last year, and Grocery Gateway will play a role in those plans. Sobeys partnered with U.K.-based Ocado Group in 2018 to build automated warehouses to fulfill online orders. The first one in Vaughan, Ont. started operating in June 2020. The company is building additional warehouses at an accelerated pace in Montreal, Calgary and an undisclosed location, but likely in B.C.