Co-op is expanding its presence in western Canada, including in Saskatoon and Regina.
The Federated Co-operatives Limited has agreed to buy 14 stores from Sobeys, which includes grocery stores and gas bars in Manitoba, Saskatchewan and Alberta.
Sobeys had to sell some stores in order to buy Safeway Canada. In this province, two Safeway locations will now become Co-op stores.
Scott Banda, Co-op CEO, said employees at the new stores in Saskatoon and Regina have nothing to worry about.
"It's our intention to maintain full employment for all those employees," Banda said.
Banda added that Co-op has already started meeting employees at Safeway stores in Regina and Saskatoon.
"We are going to continue over this transitional period so that when we hit day one these people are proud members of our Co-op team," Banda said.
About 1,300 employees work at the stores involved in this deal.
The transaction still has to be finalized, but that could happen next month.