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Wal-Mart Canada Buys Target Space for C$165 Million

Wal-Mart Canada Buys Target Space for C$165 Million

MISSISSAUGA, ON - Wal-Mart Canada has bought 13 former Target spaces, with expectations to invest C$350 million ($289 million) total to make them operable under the Wal-Mart Canada banner.

Dirk Van den Berghe, President and CEO, Walmart Canada“Wal-Mart is committed to the Canadian market, and this agreement helps us accelerate our growth plans,” Dirk Van den Berghe, Wal-Mart Canada Chief Executive, said in a press release.

Wal-Mart paid Target C$165 million ($136 million) for the 12 store leases it bought, as well as one owned property, according to the release, which will add about 1.6 million feet of retail space to Wal-Mart’s presence in Canada.

“The 13 stores acquired are well situated, and we are excited to bring Wal-Mart’s successful Supercentre offer to customers in these markets,” Van den Berghe continued. “We have served millions of loyal customers, and look forward to continuing to serve them through our stores and growing e-commerce business.”

As we previously reported, Target had put up 55 store leases and 19 spaces for office and warehouse use and had released a small list of interested buyers. Wal-Mart had been at the top of that list of inquirers.

The transactions between the companies are still subject to the approval of the court, reportedly in accordance with Target Canada's Companies' Creditors Arrangement Act (CCA) proceedings, as well as other customary conditions.