Loblaw to buy Shoppers Drug Mart for $12.4B
Loblaw Companies Ltd. (TSX: L) has announced a deal to purchase Shoppers Drug Mart Corp. (TSX: SC) for $12.4 billion in cash and stock.
The deal will combine Canada's largest grocery retailer with the country's largest chain of pharmacies.
Under the terms of the agreement, which is still subject to approvals, Shoppers will keep its brand name and operate as a separate division of Loblaw.
Loblaw is offering $33.18 in cash plus about six-tenths of a Loblaw common share for each Shoppers Drug Mart common share.
Using the Friday closing price, the offer is worth $61.54 per Shoppers Drug Mart common share.
That's about 29 per cent above the recent average trading price for the Shoppers stock.