It’s a deal that is expected to change the landscape of retail in Canada.
Loblaw executive chairman Galen Weston announced July 15, that the Toronto, Ontario-based company, will acquire all outstanding common shares of Shoppers Drug Mart, gaining 1,200 stores in all provinces for $12.4 billion in cash and stock.
The deal will allow the two retail giants to play off each other’s strengths and allow both to expand their product range.
Naomi Garrish, owner/associate of Shoppers Drug Mart in Oliver, said no stores are expected to close as a result of the merger and there will not be any lay-offs or job losses at her store or any others.
According to tmx.com, Loblaw shares went up more than eight per cent once news of the deal went public, and were trading at $51.54 by midday Monday on the Toronto Stock Exchange. Shoppers shares were also up nearly 27 per cent and trading at $61.33.
Shoppers Drug Mart will continue to keep its name as well as the popular Optimum loyalty program while operating as a separate division of Loblaw.
The deal will allow the drug store to gain access to Loblaw’s network of food suppliers.
Shoppers will also eventually carry the President’s Choice brand of food products. The agreement is definitive and expected to close within the next six months upon approval by shareholders and the Competition Bureau.
