Loblaw Shoppers Drugmart

Loblaw and Shoppers Drug Mart set to merge

In a blockbuster deal, Loblaw Companies is set to acquire Shoppers Drug Mart to the tune of $12.4 billion. Although Shoppers will retain its name and much of its brand identity, one can expect the food offerings at the drugstore to increase as part of the merger. Although many Shoppers locations already have small grocery sections, the plan is to transform the pharmacies into small scale grocery stores to compete with stores like Sobey's Urban Fresh and Rabba. Likewise, one can expect beefed up pharmacies in Loblaw grocery stores.

Should the merger go through, one of the first changes customers will notice is the presence of PC food items on Shoppers shelves. Shoppers' shareholders will vote on the deal in September, with two thirds approval required to cement the acquisition. What do you think? Does the customer win in this deal, given the increased offerings promised at both the existing grocery and drugstores?


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