One Canadian retail giant is buying another.
As if determined to prove that media and telecom aren’t the only Canadian industries that can consolidate like crazy, Brampton-based grocery giant Loblaw Companies Limited announced this morning that it would be acquiring Shoppers Drug Mart for $12.4 billion in combined cash and stock. The press release says the move “will enhance the companies’ competitive positioning in an evolving retail landscape,” which may be PR-speak for “we’re nervous about Target and Walmart.”
The resulting company will be a retail behemoth with, Loblaw projects using 2012 numbers, something on the order of $42 billion in annual revenue.
The deal still needs approval from Shoppers Drug Mart’s shareholders. They’re expected to vote on the matter in September.