APRIL 2014
H
business elite canada
15
L
oblaw Companies Ltd. has closed a $12.4
billion cash-and-stock deal to buy Shop-
pers Drug Mart Corporation and has re-
ceived approval from the Competition Bureau
for the takeover, under the conditions that it
will sell 18 stores and nine Loblaw-run phar-
macies to an independent operator.
The deal, that became effective on March
28th, allows the corporation to own 2, 738
corporate, franchised and associate-owned
grocery stores and 1, 824 pharmacies in op-
eration across Canada. Shoppers Drug Mart
shareholders will be paid $49.22 in cash, or
0.2592 Loblaw shares for each of their shares.
For the best interest of consumers, the Bureau
will monitor Loblaw’s programs closely regard-
ing its relationship with suppliers to ensure Ca-
nadian consumers benefit from the deal, and
is meant to prevent the big chain from forcing
suppliers to offer it lower pricing that they give
to other retailers.
RT
