Canada based Loblaw Companies Limited has acquired drug store giant Shoppers Drug Mart for C$12.4bn ($11.9bn). Under the terms of the agreement, Loblaw is to acquire all of the outstanding Shoppers Drug Mart common shares for $33.18 in cash.
This acquisition is said to enhance both companies' competitive retail positioning as well as create new growth opportunities for shareholders and greater choice for customers. According to Loblaw, the combined companies generated in excess of $42bn in revenue in 2012.
"This transformational partnership changes the retail landscape in Canada. With scale and capability, we will be able to accelerate our momentum and strengthen our position in the increasingly competitive marketplace," said Galen G. Weston, Executive Chairman of Loblaw. "This combination creates a compelling new blueprint for the future, positioning us to capitalise on important trends in society, from the emphasis on health, wellness and nutrition, to the imperatives of value and convenience."
Domenic Pilla, President and CEO of Shoppers Drug Mart added: "We are delighted to partner with Loblaw to leverage our combined strengths. For our shareholders, this transaction provides significant and immediate value, as well as the ability to benefit from future upside by virtue of their continued ownership of shares in the combined company."
Loblaw is a subsidiary of George Weston Limited, Canada's largest food retailer and provider of drugstore, general merchandise and financial products and services.
