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BRAMPTON, Ontario — Loblaw Cos. has gained approval from Canada’s competition watchdog for its $12.4 billion (Canadian) acquisition of Shoppers Drug Mart Corp. (SDM).
Loblaw Cos. has gained approval from Canada’s competition watchdog for its $12.4 billion (Canadian) acquisition of Shoppers Drug Mart Corp. (SDM).
The merger unites Canada’s largest grocer with its biggest pharmacy chain. It also strengthens Loblaws as competition intensifies from such domestic rivals as Sobeys Inc. and U.S. powerhouses Target Corp., Walmart and Costco Wholesale Corp.
"We are pleased the Competition Bureau has concluded its review of this transaction and to have its consent to bring these two great Canadian companies together," says Loblaws executive chairman Galen Weston.
Loblaws expects that the deal will close on March 28.
To win the bureau’s approval, Loblaws agreed to sell 18 grocery stores and nine pharmacies. Loblaws has more than 1,000 corporate and franchise grocery stores operating under 22 banners, including Atlantic, Extra Foods and SaveEasy. SDM has 1,250 Shoppers Drug Mart and Pharmaprix outlets.
