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Loblaws gets approval for Shoppers purchase, but must sell some stores
TORONTO – Loblaw Companies Ltd. (TSX:L) has received approval from the Competition Bureau for its $12.4-billion purchase of Shoppers Drug Mart Corp. (TSX:SC), with a few stipulations.
The government agency says Loblaw will be required to sell 18 stores and nine pharmacies to an independent operator.
Other “behavioural restrictions” will be placed on Loblaw over agreements with suppliers for up to five years.
The Competition Bureau says it will continue to investigate certain pricing programs and agreements Loblaw has made.
Some suppliers have complained that the country’s largest grocery chains use unfair practices, and have called on an industry code of conduct.
Loblaw says the transaction, which was announced in July 2013, is scheduled to close on March 28.
Shares of Loblaw rose $1.30 to $47.52 while Shoppers shares climbed 88 cents to $61.49.
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