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Canada: $11B grocery merger gets a pass

By  |  March 23, 2014

Canadian supermarket giant Loblaw Cos announced late last week that it has earned regulatory approval for its $11.03 billion buyout of Shoppers Drug Mart, according to reports.

The transaction combines two of the nation’s top retailers, resulting in the operation of thousands of groceries and pharmacies across Canada.

But the deal was not cleared by Canada’s Competition Bureau without concessions. Loblaw reportedly agreed to divest 18 outlets and, additionally, the Bureau imposed restrictions on contracts made between the conglomerate and suppliers to safeguard against price-fixing, reports say.

While the Bureau did not elaborate on what those restrictions were, reports say Loblaw said the agreements focus on a program that promotes price-matching between rivals.

Full Content: Wall Street Journal

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