Shoppers Drug Mart Shareholders Accept Loblaw’s Acquisition
Canada’s largest food retailer to take over the pharmacy retailer
By: Julienne Bay, Staff Writer
Shareholders of Shoppers Drug Mart Corporation voted in favour of Loblaw Company Limited’s acquisition of the company, at a special meeting held in Toronto last month. The acquisition was approved by 99.89 per cent of the voters. Loblaw’s Executive Chairman, Galen G. Weston, responde to the vote by saying that he was very pleased that Shoppers Drug Mart shareholders have ‘overwhelmingly decided’ to support Loblaw’s acquisition.
The deal, initially proposed in July 14, 2013, seeks to merge Loblaw, Canada’s largest food retailer, with Shoppers Drug Mart, Canada’s leading pharmacy retailer by the end of the first quarter of 2014. Shoppers Drug Mart will keep its name, operating as a division of Loblaw.
Shoppers Drug Mart (Pharmaprix in Quebec) currently has 1,244 retail locations, and 57 medical clinic pharmacies. These locations would merge with over 1000 Loblaw stores across Canada. Weston states that, “the combination of Loblaw and Shoppers Drug Mart will transform the Canadian retail landscape by delivering more choice, service, value and convenience for consumer”.
Completion of the C$12.4 billion buyout of Shoppers Drug Mart is still conditional; it requires approval by the Ontario Superior Court of Justice, in compliance with the Competition Act (Canada) and other customary closing conditions. Weston remarks, “given the complementary nature of the two companies’ businesses and the intensely competitive Canadian retail market, we remain confident the transaction will be approved”. If the two companies do join, they are sure to create Canada’s leading retailer.
Julienne Bay is a j-student from Toronto. As an avid traveller, coffee-drinker and documentary junkie, she’s constantly trying to figure out what it means to be human.