BRAMPTON AND TORONTO, Ontario — Loblaw and Shoppers Drug Mart have announced that the Competition Bureau has approved Loblaw's acquisition of Shoppers Drug Mart, and the acquisition is expected to close March 28.
"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," stated Galen 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."
As part of its agreement with the Competition Bureau, Loblaw will sell 18 stores and nine pharmacy operations. Loblaw does not anticipate any store closures as a result of these divestitures.
In the course of its review of the acquisition, the Competition Bureau expressed potential concerns about certain Loblaw supplier practices. The company stated that it will cooperate with the Competition Bureau in its continued review of these practices.
Loblaw and Shoppers Drug Mart announced on July 15 the definitive agreement under which Loblaw will acquire Shoppers Drug Mart for C$12.4 billion in cash and stock.