Loblaw Announces a $12.4 Billion Acquisition of Shoppers Drug Mart
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Loblaw Announces a $12.4 Billion Acquisition of Shoppers Drug Mart

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.

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