Retail News Breaks
SDM shareholders OK merger with Loblaw
September 12th, 2013
TORONTO – Shoppers Drug Mart Corp. shareholders have given the green light to the company's acquisition by Loblaw Cos.
In a special meeting Thursday, Shoppers Drug Mart stockholders approved the $12.4 billion (Canadian) cash and stock deal, with 99.89% of eligible shareholders voting in favor of the agreement.
"We are very pleased that Shoppers Drug Mart shareholders have overwhelmingly decided to support Loblaw's acquisition, which brings together two of the most recognized and trusted names in Canadian retailing to create the leading Canadian retailer," Galen Weston, executive chairman of Loblaw, said in a statement. "The combination of Loblaw and Shoppers Drug Mart will transform the Canadian retail landscape by delivering more choice, service, value and convenience for consumers."
Pending Canadian and Ontario regulatory approvals and other customary closing conditions, the transaction is expected to close by early next year, the companies said.
"Given the complementary nature of the two companies' businesses and the intensely competitive Canadian retail market, we remain confident the transaction will be approved," Weston stated. "Discussions with the [Canadian] Competition Bureau are ongoing and proceeding as expected. We are working with the bureau to expedite the process. We continue to expect to complete the transaction by the end of the first quarter of 2014."
Announced in mid-July, the acquisition would bring together Canada's largest drug chain and Canada's largest supermarket retailer. Overall, the merged company would have about 2,350 stores and 1,800 pharmacies across Canada, with combined revenue of about $42 billion.
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