Loblaw Obtains Approval from Competition Bureau for Acquisition of Shoppers Drug Mart Corporation
Loblaw Companies and Shoppers Drug Mart have received approval from the Competition Bureau for Loblaw's acquisition of Shoppers Drug Mart expected to close March 28, 2014.
"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," said Galen G. Weston, Executive Chairman of Loblaw. "This merger uniquely positions Loblaw to meet the most important consumer trends in the country, including urbanization and health and wellness. In doing so, we will continue to deliver more choice, more value, and more convenience to Canadians."
Loblaw will sell 18 stores and nine pharmacy operations as part of the deal and does not anticipate any store closures as a result of these divestitures, according to a press release.
Shoppers Drug Mart shareholders can choose whether to receive $61.54 in cash or 1.29417 Loblaw common shares plus $0.01 cash for each Shoppers Drug Mart share held. The deadline for registered Shoppers Drug Mart shareholders to make an election with respect to the form of consideration they wish to receive is March 26, 2014. Registered shareholders are reminded that they must complete, sign and return a Letter of Transmittal and Election Form with their share certificate(s) to Equity Financial Trust Company, as depositary, by the election deadline. According to the company, shareholders holding Shoppers Drug Mart shares through a broker, investment dealer or other intermediary, should carefully follow the instructions provided by such broker, investment dealer or other intermediary in order to make an election.
Shoppers Drug Mart shareholders who have not made an election by the election deadline will be deemed to have elected to receive the cash consideration as to 53.9% of their shares and the share consideration as to 46.1% of their shares.
Congratulations Loblaw on the acquisition of Shoppers Drug Mart!
