Two major Canadian brands are joining forces today as Loblaw announced its plans to acquire Shoppers Drug Mart for $12.4 billion in a cash and stock deal. Not bad considering combined the two companies earned revenues in excess of $42 billion in 2012.
“This transformational partnership changes the retail landscape in Canada. With scale and capability, we will be able to accelerate our momentum and strengthen our position in the increasingly competitive marketplace,” said Galen G. Weston, Executive Chairman of Loblaw. “This combination creates a compelling new blueprint for the future, positioning us to capitalize on important trends in society, from the emphasis on health, wellness and nutrition, to the imperatives of value and convenience.”
Loblaw has said that Shoppers Drug Mart will retain its name and brand, and operate as a separate division under and expand its product offerings to include Loblaw’s private label and convenience food.